Today, billet prices across India have gained by INR 100-300/MT D-o-D. Industry participants mentioned that trades are much better at present as buyers are taking interest at increased prices due to recent improvement in long steel sales across major consuming markets.
Current trade prices for 100*100 & 125*125 mm billet are assessed at INR 19,700/MT ex-Raipur, INR 19,900/MT ex-Durgapur, INR 22,000/MT ex-Mumbai, INR 21,500/MT ex-Hyderabad and INR 21,800/MT ex-Chennai.
Merchant ingot/billet manufacturers based in Sambalpur (Odisha) and Raigarh (Chhattisgarh) discussed in a meeting to shutdown their units from 1 Sept’16 due to high input cost, which is caused by high power charges.
In both the markets, nearly 25-25 merchant ingot/billet makers are running units and majorly selling material to north India. Current power charges in Sambalpur (Odisha) are INR 5.70/unit and Raigarh at INR 4.10/unit. The manufacturers are willing to get lower power charges by approx INR 1.00/MT on the current rates.
It seems that if the furnace operators will close their production, ingot/billet offers will remain on positive side as it will create shortage of material, especially in north India.
MS Billet prices as on 29 Aug’16
| Region | Particular | Prices | D-o-D | W-o-W |
| North India | Ex-Mandi Gobindgarh | 22,650 | + 200 | + 150 |
| East India | Ex-Durgapur | 19,950 | + 200 | + 450 |
| Ex-Jharsugda | 19,000 | + 150 | 0 | |
| Ex-Kolkata | 20,150 | 0 | + 250 | |
| Ex-Rourkela | 19,000 | + 150 | 0 | |
| Ex-Raigarh | 19,300 | + 250 | + 100 | |
| Ex-Raipur | 19,700 | + 250 | + 150 | |
| West India | Ex-Ahmedabad | 21,150 | + 150 | – 50 |
| Ex-Goa | 21,000 | 0 | 0 | |
| Ex-Mumbai | 22,000 | + 100 | + 300 | |
| South India | Ex-Chennai | 21,800 | 0 | + 450 |
| Ex-Hyderabad | 21,500 | 0 | + 500 |
Basic prices in INR/MT
Source: SteelMint Research
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