Shortage of Scrap and low Ingot production has resulted in a hike of around INR 300-500/MT of Semi finished and by about 200-500/MT for Finish products within a week’s time.
MS Ingot/Billet manufacturers continue to improve their offer owing to shortage of Scrap and low production that intact the demand.
Market participants expect that,
‘The raw material shortage will continue to support Semi finish and Finish prices to a range bound or it will improve gradually. There are only a few chances for market corrections.’
Major highlights are:
MS Ingot: Offers strengthens by INR 200-500/MT during a Week’s time in India’s domestic market. In Mandi Gobindgarh, Durgapur and Raipur on limited production, prices are up by INR 300-500/MT on W-o-W basis. However, in South, market prices remained unchanged for this Week’s time.
Sources confirmed that Durgapur is continuously selling its material to Mandi Gobindgarh. This price viability has improved the Bengal market demand.
Durgapur Billet is selling at the range of about INR 31,600-31,800/MT FOR in Mandi Gobingarh, as the offers were cheaper than the locally produced MS Billet by INR 1,000-1,200/MT.
Raipur Billet is selling at INR 30,400-30,600/MT delivered at Jalna in consignment; the offers are now cheaper by around 300-500/MT from the local market.
Scrap: Low domestic MS Scrap availability and high cost of imported Scrap resulted in price hike of Semi finish and Finished steels in domestic market. Imported Scrap offers are up by $5-7, Dubai’s HMS 1&2 offers at USD 350-355/MT CFR Mumbai.
Re-bar: In few markets Secondary manufacturers have improved their offers owing to poor Ingot/Billet delivery and high prices. Sources confirmed that the inventory has come down in Durgapur and Raipur. Now the buying is average across India. Prices have improved by INR 200-500/MT W-o-W in Mumbai, Raipur and U.P markets. Whereas, in other regions price have remained at same levels.
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