Weak sentiments prevailing in current Indian market as the government clarified delay in MIP is driving down MS billet prices to low levels. Offers have dipped in the range of INR 1,000-2,000/MT across major regions within a week.
Sharpest price corrections have been seen in markets like Ahemdabad (-2,000), Raipur (-1,800), Mumbai (-1,700), followed by Durgapur (-1,450) and Rourkela (-1,050).
Post the government’s announcement of imposing MIP and safeguard duty on certain steel products in order to curb cheaper imports, domestic market had gained some strength. But, delay in the decisions is now again reeling the steel industry under pressure. The government won’t rush on imposing MIP on steel and has postponed it for coming days.
Moreover, overcapacity of steel in China and devaluating Yuan are still the biggest cause of worry for Indian government as well as domestic steelmakers.
MS billet prices as on 8 Jan’16
| Particular | Prices | W-o-W |
| Ex-Mandi Gobindgarh | 23,800 | -1,900 |
| Ex-Durgapur | 21,250 | -1,450 |
| Ex-Rourkela | 21,000 | -1,050 |
| Ex-Raipur | 21,500 | -1,800 |
| Ex-Ahmedabad | 23,500 | -2,000 |
| Ex-Jalna | 22,900 | -1,700 |
| Ex-Mumbai | 23,000 | -1,700 |
| Ex-Chennai | 22,850 | -100 |
| Ex-Hyderabad | 23,000 | -1,400 |
Prices in INR/MT
Source: SteelMint Research
Leave a Reply