Imported Billet Offers to India fall by USD 10/MT

A sign of caution for Indian Billet manufacturers as offers from China and CIS have fallen by USD 10/MT W-o-W. Current offers are assessed at USD 390-395/MT, CIF West Coast India, which was USD 400-405/MT in last week.

Current import offers give a big room for imports as domestic prices are dearer by at least INR 2,000-3000/MT (USD 32-48/MT). For instance, landed cost of imported Billet in Mumbai will be around INR 27,000-27,500/MT (including import duty of 5%) and in Chennai at around INR 27,500-28,000/MT (including import duty). Whereas, domestic Billet prices are trading at INR 29,800-30,000/MT ex-plant.

“We are getting Billet offers at USD 390/MT, CIF Mumbai from Arcelor Mittal for a quantity of 10,000 MT. Prices are attractive but we do not want to take risk as chances are high that Indian government may impose duty on import of steel”, said a re-roller based in Mumbai.

Another re-roller based in Western India also confirmed to have offers from Chinese traders at around USD 390-395/MT levels, which has chromium content of upto 0.03%.

Domestic Billet Prices slump by upto INR 1,000/MT M-o-M

Indian Billet prices in the domestic market are witnessing continuous downfall. In a month’s time, offers across India, for commercial grade Billet have corrected by upto INR 1,500/MT owing to low buying interest from mill operators and falling raw material (Sponge iron & Pig iron) prices in the domestic market. Indian Billet offers are assessed at around INR 26,700-30,000/MT (USD 430-485/MT).

Indian Steelmakers hopeful for Import Duty

Indian steelmakers are hopeful that the government will impose a duty on rising finished steel imports. Domestic prices may fall further on extremely weak prices in the global market.

Billet offers as on 24 Jan’15

Prices on ex-works basis
All taxes excluded