Billet prices in India remained stable this week with limited trading activities. Extreme winter conditions in most part of India keep construction activities low.
Billet prices find support on production cut by small and medium manufacturers across the country. Raw material situation seems to be easing out after some Odisha based Iron ore mines raised production levels. However, availability of Scrap remains slightly critical. Prices in Scrap based markets such as Mumbai & Ahmedabad have increased by INR 200-400/MT W-o-W. Whereas, in Sponge based markets like Durgapur, prices have declined by INR 400/MT W-o-W and INR 1,000/MT M-o-M.
Key Highlights
- Indian Billet prices were assessed at INR 27,800-31,100/MT ex-works
- Manufacturers based in Central India (Raipur & Raigarh) are continuously supplying Billet to North India, which supports present offers. However, lack of transport availability has delayed delivery of orders
- Sponge iron prices across markets has noticed correction owing to increased supply of raw material – Iron ore & Pellet
- Imported Scrap (HMS 1&2) offers from Middle East remain stable at USD 315/MT, CIF Nhava Sheva
- Billet prices in the global market remained firm on the backdrop of rising Scrap offers. Billet offers from CIS (Russia/Ukraine) were assessed at USD 400-405/MT, FoB Black Sea
- Indian export tender of 80,000 MT Billet/Bloom will expire on 08 Jan, 2015
- Last export tender from India has fetched bids of USD 419/MT for Bloom and USD 436/MT for Billet, FoB Vizag
Billet Prices
| Particular | Prices | W-o-W | M-o-M |
| Raipur | INR 28,200/MT | + 200 | 0 |
| Durgapur | INR 28,500/MT | – 450 | – 1,050 |
| Chennai | INR 30,500/MT | – 50 | + 1,550 |
| Mumbai | INR 31,100/MT | + 200 | + 1,300 |
| FoB Black Sea | USD 402/MT | + 2 | + 2 |
| FoB India | USD 435/MT | 0 | 0 |
| USD 1 | INR 63.39 | – 0.03 | + 1.16 |
Basic prices on ex-works basis; all taxes will be applicable
Source: SteelMint Research
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