Indian Billet prices gained by as much as INR 1,500/MT (USD 25/MT) in last 1-week owing to low inventory levels. However, market participants believe that fundamentals are still weak.
Billet prices in the domestic market, which have been trading low owing to subdued demand, have shown some improvement on the backdrop of restocking by traders & stockiest. In last 1-week, prices have moved up by INR 600-1,500/MT (USD 10-25/MT).
Current offers are hovering in the range of INR 30,000-33,000/MT (USD 490-540/MT) ex-works.
Current offers for MS Billet Ex-Works
|
City |
Price (INR/MT) |
USD Price |
W-o-W (INR/MT) |
|
Rourkela |
30,200 |
495 |
+ 1,200 |
|
Durgapur |
31,200 |
511 |
+ 600 |
|
Kolkata |
31,500 |
516 |
+ 600 |
|
Jharsugda |
30,100 |
493 |
+ 1,100 |
|
Raipur |
31,000 |
508 |
+ 750 |
|
Mumbai |
32,500 |
532 |
+ 1,400 |
|
Jalna |
32,000 |
524 |
+ 1,000 |
|
Jaipur |
32,950 |
540 |
+ 1,150 |
|
Kandla |
32,400 |
531 |
+ 1,500 |
|
Hyderabad |
31,500 |
516 |
+ 700 |
|
Chennai |
32,100 |
526 |
+ 150 |
Basic prices; taxes extra
Payment next day/advance
Some traders mentioned that there is very little scope of further price correction, viewing disrupted supply of ore in the domestic market.
“Most of the furnaces and rolling mills are running on low utilization owing to high production cost. Also, there is low inventory level with traders & stockiest. We expect prices should sustain until & unless some relaxation is seen in supply of Iron ore from Odisha,” said a trader based in Eastern India.
Some traders believe that prices have boost up sharply as speculation and fundamentals are still weak.
“Restocking is happening at traders’ level. Buying from end-users is still poor. Also, government’s spending on projects is low now. We feel that prices have over-boosted and may come back to previous levels,” said another trader based in Eastern India.
Indian Billet Export Deal at USD 505-515/MT FOB
Billet deal for Blooms was heard to be closed at USD 506/MT FOB Vizag of grade ’C20MMN’ for Bangladesh; shipment will be made next month. Previously, Billet of similar quality was sold at around USD 492-495/MT FOB Vizag, for which shipment was made last week.
Indian Billet (IS 2830) export deals were heard to be closed at USD 515/MT FOB Vizag port to Sri Lanka based Re-rollers.
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