Furnace owners in Hyderabad are planing to shut units 2 days in a week, from next week onwards. Approximately 7,000-8,000 MT Ingot /billet production will be hamper every day.
Manufacturers in Hyderabad are currently tussling with low conversion spread and high inventory. Merchant Ingot/billet manufacturers in Hyderabad (Telangana) are likely to halt their production from 17 Oct’16 in order to meet demand supply chain in the state.
A well known manufacturer from the region stated “furnaces in the state will shutdown their production for two days in a week (Monday & Tuesday) to meet demand-supply chain”.
Participants also complained that value chain of steel is disturbed as billet prices have corrected sharply by INR 1,000/MT in a month and sponge prices by INR 100/MT. As a result, conversion spread from MS billet and sponge iron has narrowed down by INR 800-1,000/MT.
In the Market, currently offers for billet at INR 22,300-22,500/MT, 80 FeM C-DRI at INR 15,300-15,400/MT& P-DRI at INR 14,800/MT ex-plant.
Sources assuming curtail production by Inductions will surely impact sponge offers in the region in days to come.
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