Following the price rise trend in Mar’17 by 6-12% , billet prices in Apr’17 have again increased by 2-5% INR 700-1,500/MT (USD 10-23), M-o-M.
The manufacturers were packed with over bookings for the 1st half of Apr’17 following good demand in finished steel products specifically in re-bars. Although, after that the demand gradually decreased affecting the prices also.
In the month, major price rise was seen in Gobindgarh (North India) by INR 1,500/MT, following the price rise of INR 1,300-1,400/MT in Durgapur & Rourkela (East India) and by INR 700-800/MT in Raipur (Central India).
During Apr’17, Indian billet average prices were assessed at INR 27,350/MT (+2.82%) ex-Raipur, INR 29,300/MT (+4.46%) ex-Mumbai, INR 28,400/MT (+1.25%) ex-Chennai & INR 30,850/MT (+5.11%) ex-Gobindgarh.
Looking at raw material price movements, the prices of sponge have fluctuated by INR 100-400/MT, while pig iron & scrap prices increased by 4-10%, INR 500-2,000/MT, (considering average prices of Apr’17 against Mar’17).
Billet monthly average prices since Apr’16
| Month | Durgapur | M-o-M | Raipur | M-o-M | Rourkela | M-o-M | Mumbai | M-o-M |
| 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 |
| Apr’17 | 27,000 | 1,300 | 27,350 | 750 | 26,500 | 1,350 | 29,300 | 1,250 |
Prices in INR/MT
Source: SteelMint Research
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