MS Ingot prices at pan India are volatile by INR 200-500/MT from past few days. However, trade volume also thin in local market but buying from other states support the MS Ingot/Billet prices.
Manufacturers are also cautious on fluctuating prices. In Central India, MS Ingot/Billet manufacturers are producing the material at around 60-70% from the installed capacities, SteelMint learned.
In southern region, prices of MS Ingot/Billet & Re-bar have raised by INR 300-500/MT owing to announcement of power cut for weekly one day in Hyderabad (Telangana).
Hyderabad based manufacturers said, “Demand for finished steel is stagnant, we have increased the offers owing to power cut otherwise we were thinking about the price correction.”
Market players believe that till the announcement of Central Budget, there is no major fluctuation in current prices as investors & builders also waiting for the surprise plan of new government.
Sponge Price under Pressure: Supply of Sponge iron from Rourkela to Raipur & Raigarh has increases, which reduces the Sponge demand in local market (Raipur & Raigarh). Rourkela Sponge iron is hovering in the range of INR 20,000/MT, whereas Raipur & Raigarh offers at INR 21,300-22,000/MT (USD 330-375/MT).
P-DRI & C-DRI Gap Widened further: High availability of Pellet, low P-DRI price and high C-DRI prices have increased the price gap between C-DRI (Sponge iron) & P-DRI (Pellet sponge) in central & eastern region. Present gap is INR 1,700-2,000/MT that earlier use to remain at INR 1,200-1,500/MT.
Imported Scrap Offer Rise: US based suppliers have increased their offers for Shredded Scrap by USD 3-4/MT owing to good demand in the domestic market. Many market participants speculate that currently there is very little chance of price correction looking at the present US Scrap demand; they expect prices likely to go up further by USD 2-3/MT.
Madhya Pradesh Budget: MP government has reduced the entry tax for Re-bars from 5% to 2% in the Budget FY15. As per SteelMint analysis, supply of Re-bar from Chhattisgarh to M.P will increase in coming days.
Re-bar manufacturers based in Chhattisgarh are facing very tough time as demand is very dull in local market as well as nearby states.
“Re-bar manufacturers of Chhattisgarh, the major producer state of Iron & Steel products, are selling around 30-40% of material to Madhya Pradesh and 20-40% to Maharashtra from the total production. After declaration of new entry tax, the supply of Re-bar from Chhattisgarh to Madhya Pradesh will increase in near future,” shared a Re-bar manufacturer based in Chhattisgarh, who produces around 9,000-10,000 MT TMT per month.
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