In Mar’17, billet prices have gain momentum by INR 1,600-2,800/MT, 6-12% (USD 24-44) M-o-M.
During the month trade volume was quite healthy, according to the trade participants. Also, with increase in prices, billet prices were recorded 2 year high levels as similar was seen during Apr’15.
In the month, major price rise were recorded in South India up to INR 2,800/MT, while, in Central & East price rose by INR 1,800-2,000/MT.
On monthly average basis, Indian billet prices during Mar’17 were assessed at INR 26,600/MT (+8.13%) ex-Raipur, INR 25,700/MT (+7.08%) ex-Durgapur, INR 28,050/MT (+7.06%) ex-Mumbai, INR 28,050/MT (+10.43%) ex-Chennai & INR 29,350/MT (+6.92%) ex-Gobindgarh.
With increase in price, the manufacturers were worried over firm (less) conversion spread (margins) which was in and around INR 9,500/MT from P-DRI to billet in Raipur & Durgapur.
Moreover, analyzing the same during same preceding last year (Mar’16), it was in the range of INR 10,000-11,000/MT in the both major key producing markets.
Billet monthly average prices since Mar’16
| Month | Durgapur | M-o-M | Raipur | M-o-M | Rourkela | M-o-M | Mumbai | M-o-M |
| Mar’16 | 22,300 | +800 | 22,650 | +700 | 21,500 | +750 | 24,450 | +600 |
| Apr’16 | 22,650 | +350 | 22,550 | -100 | 21,750 | +250 | 24,450 | 0 |
| May’16 | 21,750 | -900 | 21,550 | -1,000 | 20,850 | -900 | 23,250 | -1,200 |
| Jun’16 | 20,600 | -1,150 | 21,000 | -550 | 20,100 | -750 | 22,650 | -600 |
| Jul’16 | 19,750 | -850 | 19,900 | -1,100 | 19,100 | -1,000 | 21,450 | -1,200 |
| Aug’16 | 19,650 | -100 | 19,700 | -200 | 18,950 | -150 | 21,450 | 0 |
| Sep’16 | 21,150 | +1,500 | 21,400 | +1,700 | 20,750 | +1,800 | 23,100 | +1,650 |
| Oct’16 | 21,850 | +700 | 21,700 | +300 | 21,150 | +400 | 23,150 | +50 |
| Nov’16 | 21,600 | -250 | 21,850 | +150 | 21,050 | -100 | 23,850 | +700 |
| Dec’16 | 23,100 | +1,500 | 23,100 | +1,250 | 22,350 | +1,300 | 25,150 | +1,300 |
| Jan’17 | 24,600 | +1,500 | 24,600 | +1,500 | 23,750 | +1,400 | 26,750 | +1,600 |
| Feb’17 | 24,000 | -600 | 24,600 | 0 | 23,350 | -400 | 26,200 | -550 |
| Mar’17 | 25,700 | +1,700 | 26,600 | +2,000 | 25,150 | 1,800 | 28,050 | +1,850 |
Prices in INR/MT
Source: SteelMint Research
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