India: Billet Price Volatility continues in Week 14

Indian Billet prices remained volatile this week amid financial year ending. In addition, trade activities also remained low across India.

Billet prices have witnessed some strength in Maharashtra, after the state government imposed an entry tax of 5% on Finished long steel. Current offers for commercial grade Billet are assessed at INR 29,000/MT (ex-Mumbai).

On the other hand, Billet prices showed some resistance in other parts of the country owing to low demand. Prices are assessed at INR 26,800/MT ex-Raipur, INR 27,500/MT ex-Durgapur and INR 28,000/MT ex-Chennai (basic prices, ED and VAT/CST extra).

Neelchal Ispat Nigam Ltd (NINL), a state owned Steel maker, had cut Billet prices by INR 500/MT last week. Offers for BIS grade Billet were in the range of INR 24,500-24,700/MT ex-works (Odisha).

Scrap shortage in North India has led to surge in ship breaking prices in Alang by INR 500-700/MT this week. However, Finished steel prices remained stable at most of the regions; keeping overall demand at the low level.

Trade-wise

1. An export tender of 80,000 MT Bloom/Billet was concluded at USD 370/MT, FoB East Coast India for Bloom and USD 405/MT, FoB East Coast India for Billet. Cargo is expected to be shipped in April to Bangladesh
2. Imported Billet offers from South Africa remain unchanged at USD 385-390/MT, CIF India
3. Black Sea Billet prices assessed at USD 355-360/MT, FoB

Billet Prices as on 1 Apr’15

Source: SteelMint Research