“Chhattisgarh power prices have been hiked by around 20% from Rs 2.80/Unit to Rs 3.75/Unit today. On account of this, Billet manufacturers in Raipur and Raigarh have increased their offers by Rs 500/MT to Rs 34,000/MT (Basic, payment next day). Billet in Bhilai also trades at Rs 34,000/MT (Basic, payment next day).
We are expecting a cut in production by around 50% now. Furnaces will be operating only during the night time as power price will come to Rs 2.40/Unit which would otherwise be higher during daytime. Trading volumes is expected to be good as buyers may take position at current levels. We assume prices might rise further by around Rs 2,000/MT by the end of this month,” said Mr. Pratik Golcha from Raipur.
“The cost of product manufacturing will increase by Rs 250/MT for rolling mills and by Rs 700-800/MT for furnaces,” a Raipur based trader added.
“Hyderabad Billet witnesses a correction and is being quoted at Rs 32,900/MT (Basic, regular payment condition). Market sentiment is weak and demand is dipping as buyers are expecting prices to slip further. They wait for market direction before they start to take positon. Power cut in Hyderabad has stopped for now. But it is considered to be temporary as there has been no official announcement by the Government,” said Mr. Harsh Chauradiya, a Hyderabad based manufacturer – Keshree Metallurgy Pvt Ltd.
Billet demand alongwith price is expected to start improving this month as prices of finished products are anticipated to show an uptrend.
According to a top official from SAIL, “Prices should move up as we expect to see better demand in the month of May. Raw material prices have also gone up. So, this should support a rise in prices.”
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