Central India based billet makers have get some relief as supply of billet from Raipur has increased to western market.
MS billet supply has become viable from central to western market on account of cheaper offers being provided by Raipur based manufacturers.
A broker based in Wada (Mumbai) reported, “Supply of MS billet from Raipur to Wada has improved as mill operators are getting material at cheaper rates by around INR 600-800/MT compared to local market.”
Mumbai and Jalna based manufacturers are offering billet at INR 21,600/MT, ex-works. While, Raipur based makers are delivering material to Jalna and Mumbai at INR 20,800/MT and INR 21,000/MT respectively. Prices are including CST and freight.
Market sources reported that there is shortage of locally produced billet as mills are operating at 40-50% capacity due to high scrap offers. Whereas, TMT manufacturers’ production is intact.
“Only issue with billet from Raipur is presence of high phosphorus and low manganese. We are looking for better quality billet on long term supply from central India”, shared a rebar manufacturer based in Mumbai.
It is to be noted that shredded scrap offers from US to CFR Mumbai have raised by around USD 10/MT M-o-M. While, sponge prices in Indian domestic market have dipped steeply by upto INR 1,300/MT in the same duration. This in turn has made steel making competitive from DRI route compared to scrap based route.
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