In Hyderabad, MS Billet & Sponge prices have slumped by INR 1,000/MT in a week’s time. Other markets such as Mumbai (- 600), Raipur (- 100), Durgapur (+ 50) and Mandi (+ 50) see some fluctuations.
In a month’s time, Semi finish market in Hyderabad (South India) has witnessed a sharp fall in prices by INR 1,000/MT. Till date, prices have declined twice in a month by INR 500/MT. Sources revealed that the major reason behind decline in prices is competitive offers by Primary Steel producers. Weak demand of Rebar from Karnataka & Maharashtra border is also a reason.
However, earlier in mid-April, Telangana government had surged cross subsidiary for private power producers. As a result, steelmakers had raised their offers by INR 1,000/MT due to fear of increase in their costing. However, there was no such effect in the market, and only limited buyers were available at increased prices. Thus, manufacturers declined prices by INR 500/MT.
[su_quote]A Semi finish & Finish steelmaker had quoted, “Semi finish prices increased owing to surge in cross subsidiary of power tariff. However, prices could not be absorbed in the market because of sluggish demand. ”[/su_quote]
It is to be noted that currently in Andhra Pradesh & Telangana, there are about 24 Ingot/Billet furnaces, 26 Sponge iron plants and 23 TMT/Structure re-rolling mills. And, most of the furnaces and mills are running at 50-60% capacity because of low profit margin and limited demand.
Hyderabad Semi Finish & Finish Long Prices as on 8 May’15
| Place | Price | Change | W-o-W | M-o-M | Q-o-Q | Y-o-Y |
| 82 FeM C-DRI | 17,800 | 0 | 0 | NA | NA | NA |
| 77 FeM P-DRI | 15,500 | 0 | – 250 | – 800 | – 2,000 | – 4,700 |
| MS Billet | 26,500 | 0 | – 1,000 | – 1,000 | – 1,200 | – 7,500 |
| Rebar (12 mm) | 29,300 | – 200 | – 1,100 | – 1,200 | – 1,200 | – 8,200 |
Prices in INR/MT
Source: SteelMint Research
MS Billet Prices as on 8 May’15
| Particular | Prices | W-o-W | M-o-M |
| Ex-Mandi Gobindgarh | 29,950 | + 150 | – 1,450 |
| Ex-Durgapur* | 26,400 | + 50 | – 1,550 |
| Ex-Jharsuguda* | 25,400 | – 200 | – 1,100 |
| Ex-Raipur* | 26,150 | 0 | – 1,250 |
| Ex-Jalna* | 27,400 | – 250 | – 1,600 |
| Ex-Kandla | 27,400 | – 200 | – 1,150 |
| Ex-Mumbai* | 28,000 | – 600 | – 1,300 |
| Ex-Chennai | 27,550 | – 250 | – 550 |
| Ex-Hyderabad | 26,500 | – 1,000 | – 1,000 |
Prices in INR/MT
*Next day payment
Source: SteelMint Research
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