The price rally continues in Indian billet market. On day on day, prices of Induction furnace grade billet moved up by INR 200-600/MT.
The Billet prices for the day are assessed in the range of INR 26,400-29,500/MT (USD 405-453) which were traded at INR 25,900-29,000/MT (USD 398-445) on 1st Apr’17.
The producer sources, claim that demand is good in addition to less conversion spread have push them to keep offers on increasing mode.
Notably, with the increasing billet prices, sponge market also increase in same proportion, hence the manufactures are unable to extract good conversion spread (margin).
The fresh, conversion spread from P-DRI to Billet in Durgapur is firm at INR 10,000/MT approximately. While, in Raipur due to hiked power tariff around INR 1.65/MT (including rebate of INR 1.40/unit) the conversion have reported at INR 10,800/MT from earlier at INR 9,800-10,000/MT.
According to the Ingot/billet manufacturers in Raipur, Central India on increased power tariff their input cost to surge about INR 1,200/MT while, conversion spread gain maximum by INR 1,000/MT.
MS Billet prices as on 03 Apr’17
| Particular/Delivery | Taxes | Prices | D-o-D | W-o-W |
| Ex-Mandi Gobindgarh | ED 12.5%, VAT/CST Extra | 30,700 | + 300 | + 400 |
| Ex-Durgapur | ED 12.5%, VAT/CST Extra | 26,900 | + 300 | + 800 |
| Ex-Jharsugda | ED 12.5%, VAT/CST Extra | 26,400 | + 500 | + 450 |
| Ex-Kolkata | ED 12.5%, VAT/CST Extra | 27,300 | + 300 | + 800 |
| Ex-Rourkela | ED 12.5%, VAT/CST Extra | 26,400 | + 500 | + 450 |
| Ex-Bhilai | ED 12.5%, VAT/CST Extra | 28,200 | + 100 | + 900 |
| Ex-Raipur | ED 12.5%, VAT/CST Extra | 28,200 | + 100 | + 900 |
| Ex-Ahmedabad | ED 12.5%, VAT/CST Extra | 29,000 | + 600 | + 700 |
| Ex-Bhavnagar | ED 12.5%, VAT/CST Extra | 28,800 | + 600 | + 700 |
| Ex-Goa | ED 12.5%, VAT/CST Extra | 27,800 | 0 | 0 |
| Ex-Jalna | ED 12.5%, VAT/CST Extra | 28,700 | + 500 | + 700 |
| Ex-Mumbai | ED 12.5%, VAT/CST Extra | 29,500 | + 600 | + 1,000 |
| Ex-Chennai | ED 12.5%, VAT/CST Extra | 28,700 | + 200 | – 200 |
| Ex-Hyderabad | ED 12.5%, VAT/CST Extra | 29,000 | 0 | + 250 |
Prices in INR/MT
Source: SteelMint Research
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