- Billet prices up by Rs 1,300/MT ($20)
- Indian primary steel players focusing more on exports
- Rupee at all time low of 65.93/USD
- CIS billet offers at around $513/MT FOB Black Sea
With falling Indian Rupee against USD, increased parity in exports and falling imports of steel products have prompted Indian steel mills to raise their offers by as much as Rs 1,300/MT ($20/MT) in last one week in the domestic market. Trade sources trust that prices have gone up largely on depreciated rupee rather than increased demand.
Industry experts say that, revival in Indian steel prices were due for a long time specially when steel prices in global market are getting better, impact on Indian steel market was anticipated. Current offers for Billet (commercial grade, Ex Works) stand at around Rs 27,000-29,500 per tonne ($415-453 per tonne), almost higher by Rs 1,300 per tonne from the last week.
“Most of the steel mills, small or large, based on coastal region has started focusing on global market over falling Rupee. At the same time imports have gone down significantly in last few weeks. Weak currency has large impact on increasing prices.” said an importer and trader based in Mumbai.
Recently big steel players like JSW and Essar have announced a hike in steel prices owing to falling Rupee and rise in import cost of coking coal.
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