Indian billet prices further declined by INR 100-350/MT D-o-D & INR 500-1,400/MT W-o-W. Lull trades in rebar in the domestic market and falling scrap & billet prices in the International market are the major facts for weaken sentiments in the Indian domestic market.
Today, offers for Induction furnace grade billet are assessed at INR 23,950/MT (-350) ex-Raipur, INR 23,100/MT (-350) ex-Durgapur, INR 23,000/MT (0) ex-Rourkela, INR 25,900/MT (-300) ex-Mumbai, INR 25,850/MT (-150) ex-Ahmedabad & INR 25,000/MT (-350) ex-Hyderabad. Price changes are mentioned on D-o-D (against last day trade) basis.
A trade source in West India (Maharashtra) reported that, the billet manufacturers in the state have healthy stock for raw materials and billets as well. Thus, they are assuming further price corrections, looking at sharp decline in global scrap prices as well sparse demand in billets. Trade dynamics in the State are more or less fluctuating on the global scrap price movements. In a week duration Imported scrap (HMS 80:20) prices down by USD 10/MT to USD 255/MT CFR India.
Moreover, in East India (West Bengal & Odisha) the manufacturers stated about heavy selling pressure in billets due to nil demand from the out of States in the view of upcoming elections. The manufacturers based in Odisha & West Bengal are usually supply bulk quantities of billet & sponge to Punjab & UP and where elections are scheduled on 4th Feb’17 in Punjab & 8th Feb to 11th Mar’17 in UP.
It seems that price pressure in billets may continue as sentiments are sluggish across the globe amid increasing inventory levels across major Indian markets.
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