Billet Offers Plunge in South As Supply Improved From Central India

Billet offers in South India have plunge down by INR 500-1,500/MT in last 1-2 days as Central India based manufacturers started to supply material.

Current offers for 100*100 mm billet in Chennai at INR 24,900/MT & in Hyderabad at INR 23,000/MT (South India), which was at INR 25,400/MT & INR 24,500/MT in Chennai & Hyderabad respectively, on 17 Nov’16 (2 days ago). However, in Raipur (Central India) offers are evaluating at INR 21,000-21,200/MT.

According to trade sources, rolling mills in south India are getting billet at cheaper price by INR 500-1,000/MT while they receiving it from Central India than to buy it from local market (South India).

In the last 4-5 days Raipur & Bhilai based manufacturers were traded billet to Hyderabad & Chennai at the price range of INR 21,000-21,400/MT (ex-plant). Freight charges from Raipur to Hyderabad at INR 1,500-1,600/MT & for Chennai at INR 2,500/MT approximately, via road.