Domestic billet prices which were volatile since couple of weeks have fallen steeply by INR 300-800/MT in last 2 days. Weak domestic and export sales led to correction in Indian billet prices.
Currently domestic billet offers for Induction furnace grade 100*100 mm are hovering at INR 23,800-27,300/MT (USD 370-425) ex-works which was traded 24,100-27,800/MT (USD 374-432) in start of week i.e. 05 Jun.
Industry participants are assuming further price corrections looking at poor take-off and prevailing sluggish trends globally. In addition, coming GST (Goods and Service tax) which will applicable from 1st Jul’17 is another major concern for them.
The standalone billet manufacturers in Western India, Gujarat & Maharashtra mentioned ‘’millers are procuring material which is required, not willing to book bulk quantities, though healthy purchase is missing in the market.”
While, in Central lndia, Raipur the suppliers mentioned, currently supply is average for billet in open market as largely the manufacturers are making billet for own consumption. It seems when the billet supply ease further in the open market, prices might rigorously fall.
In the East market, Durgapur & Rourkela are totally dependent on out-state demand & exports. The manufacturers in the region presently are getting minimal inquiries from the both sales destinations.
Domestic Billet Prices as on 07 Jun’17
| Region | Particular/Delivery | Taxes | Prices on 07 Jun | 06 Jun | 05 Jun | 03 Jun |
| North India | Ex-Mandi Gobindgarh | ED 12.5%, VAT/CST Extra | 28,000 | 28,350 | 28,700 | 29,000 |
| East India | Ex-Durgapur | ED 12.5%, VAT/CST Extra | 24,000 | 24,250 | 24,800 | 24,400 |
| Ex-Jharsugda | ED 12.5%, VAT/CST Extra | 23,800 | 23,900 | 24,100 | 24,100 | |
| Ex-Kolkata | ED 12.5%, VAT/CST Extra | 24,400 | 24,650 | 25,200 | 24,800 | |
| Ex-Rourkela | ED 12.5%, VAT/CST Extra | 23,800 | 23,900 | 24,100 | 24,100 | |
| Central India | Ex-Bhilai | ED 12.5%, VAT/CST Extra | 25,100 | 25,600 | 25,600 | 25,700 |
| Ex-Raigarh | ED 12.5%, VAT/CST Extra | 24,800 | 25,200 | 25,250 | 25,300 | |
| Ex-Raipur | ED 12.5%, VAT/CST Extra | 25,100 | 25,400 | 25,600 | 25,700 | |
| West India | Ex-Ahmedabad | ED 12.5%, VAT/CST Extra | 27,300 | 27,500 | 27,800 | 27,600 |
| Ex-Bhavnagar | ED 12.5%, VAT/CST Extra | 27,100 | 27,300 | 27,600 | 27,400 | |
| Ex-Goa | ED 12.5%, VAT/CST Extra | 25,800 | 25,800 | 25,800 | 25,800 | |
| Ex-Jaipur | ED 12.5%, VAT/CST Extra | 27,100 | 27,400 | 27,650 | 27,700 | |
| Ex-Jalna | ED 12.5%, VAT/CST Extra | 26,100 | 26,400 | 26,500 | 26,500 | |
| Ex-Mumbai | ED 12.5%, VAT/CST Extra | 26,700 | 26,800 | 27,000 | 27,000 | |
| South India | Ex-Chennai | ED 12.5%, VAT/CST Extra | 24,900 | 24,900 | 25,000 | 24,900 |
| Ex-Hyderabad | ED 12.5%, VAT/CST Extra | 26,000 | 26,250 | 26,500 | 26,000 |
Prices in INR/MT
Source: SteelMint Research
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