MS Ingot offers across India have found some support owing to production cut by induction furnaces at major markets in India. Ingot offers are prevailing in the range of INR 28,300-33,300/MT; down by INR 2,500/MT M-o-M.
Odisha based manufacturers are offering at lowest price of INR 28,300/MT ex-Rourkela. Meanwhile, it was heard that manufacturer based in Jharsuguda (Shyam Metalics) is offering Billet at INR 29,100/MT ex-plant.
Manufacturers based in Central India mentioned that furnaces are reducing its production owing to falling conversion cost. On one hand, where Sponge iron prices are stable, on the other Ingot & Billet prices have corrected upto INR 1,700/MT in last few trading sessions. Conversion spread of Sponge to MS Ingot has risen to INR 7,500-7,900/MT from standard conversion spread of INR 8,500/MT.
Punjab based manufacturers have highlighted that lots of materials are coming from other states on lower prices. They claimed to have offers from Gujarat based Billet manufacturers at INR 32,600/MT in comparison with a local price of INR 33,600/MT.
In West India (Mumbai) and South India (Chennai), MS Ingot prices have only corrected by INR 1,000-1,400/MT, as the mill owners have reduced the production. As per the sources, furnaces are operating at night shift owing to low electricity cost. Imported HMS I&2 Scrap is being offered at USD 370/MT, but buyers are seeking at USD 360/MT level.
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