MS Ingot/Billet offers across India remain volatile owing to limited production and low conversion spread. Ingot offers are prevailing in the range of INR 28,700-32,700/MT.
MS Ingot is being offered in Rourkela at lowest of INR 28,700/MT, which is unchanged from previous week. Similarly, offers in Durgapur & Raipur remain stable at INR 30,500/MT and INR 29,700/MT. Ingot/Billet manufacturers across all market confirmed that amid low conversion spread; we have decided to reduce our production. Billet prices in Raipur remain robust, which has increased the premium over Ingot prices to INR 700/MT that was earlier at INR 500/MT.
Iron Ore Shortage hits South India as well: Sponge makers based in Odisha & Karnataka (Bellary & Hindupur) mentioned that they are facing problems to produce Sponge iron as availability of Iron ore is very low. Therefore, we are reluctant to reduce offers. Bellary Sponge pellet (FeM 77) is being offered at INR 19,000/MT; up by INR 200/MT.
Central Sponge Prices remain Unaltered: Lowest price of Sponge iron is recorded in Odisha at INR 20,200/MT (FeM 78). However, high prices are prevailing in Raipur (Chhattisgarh) at INR 21,700/MT (FeM 79-80). DR CLO lumps offers remain at INR 22,000/MT (payment advance).
Post Vishwakarma Jayanti, Finish Steel Sales remain Low: Re-bar suppliers based in central India quoted, “We have an expectation of good demand post Vishwakarma Pooja but buying sentiment of market is very poor.”
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