Billet price in Domestic market rise sharply up to INR 1,200/MT W-o-W and INR 1,700/MT M-o-M.
In rising steel prices, outstation buying is always competitive. Buyers are unable to take a decision on delivery time and future price. SteelMint learned market participants are anticipating bullish steel prices in near term on shortage of scrap and logistics issue in Odisha. Therefore Billet buying from Odisha has increased and it is competitive.
Landed Cost is lower by INR 300-400/MT: The current offer for 100×100 MM commercial grade billet in Rourkela, Odisha are prevailing at INR 24,000-24,200/MT ex-plant through CST billing. And the freight charges via road are assessed at INR 3,200-3,400/MT for Mandi Gobindgarh, North India, INR 2,000/MT for Hyderabad, South India & INR 1,000/MT for Raipur, Central India.
“Odisha Billet FOR to Raipur is at INR 25,700-26,000/MT whereas local billet are at INR 26,100-26,300/MT Ex works” said a trader in Raipur market.
Similarly, Odisha Billet including CST (at 2.0%) & freight (mentioned above) the landed cost is approximately at Mandi FOR INR 27,800-28,000/MT (Local INR 28,300/MT) , Hyderabad FOR INR 26,500/MT (Local INR 26,500-27,000/MT).
Domestic Billet offers as on 24 Feb’17
| Particular/Delivery | Prices | W-o-W | M-o-M |
| Ex-Mandi Gobindgarh | 28,300 | 500 | 800 |
| Ex-Durgapur | 25,000 | 800 | 1,200 |
| Ex-Rourkela | 24,350 | 750 | 1,000 |
| Ex-Raigarh | 25,000 | 700 | 1,250 |
| Ex-Raipur | 26,100 | 900 | 1,700 |
| Ex-Ahmedabad | 27,000 | 500 | 800 |
| Ex-Mumbai | 26,800 | 500 | 550 |
| Ex-Chennai | 26,700 | 1,200 | 950 |
| Ex-Hyderabad | 26,500 | 1,000 | 1,000 |
Prices in INR/MT
Source: SteelMint Research
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