Indian billet market has opened today with a minor price corrections of INR 50-100/MT against yesterday’s closing. However, sponge offers remain strong in the market due to short supply of material, which has further lower down Indian billet makers’ conversion spread (margins). Therefore, manufacturers have started to cut production. For an instance, around 3-4 manufacturers in Mumbai, who’s total billet production is around 300-350 MT per day, are producing material in night hours only.
As per market experts, unsupportive finish long steel demand will further pressurize Indian billet market. While, seasonal increasing prices of raw materials i.e sponge & scrap will force manufacturers to curtail production instead of running units for 24 hrs on lower margins.
Indian billet prices as on 20 Jul’16
| Particular/Delivery | Size/Grade | Prices | D-o-D | W-o-W | M-o-M |
| Ex-Mandi Gobindgarh | 125×125 mm, IS 2831 | 23,200 | – 100 | 0 | -800 |
| Ex-Durgapur | 125×125 mm, IS 2831 | 19,850 | – 50 | -50 | -500 |
| Ex-Jharsugda | 125×125 mm, IS 2831 | 19,250 | + 50 | +50 | -750 |
| Ex-Kolkata | 125×125 mm, IS 2831 | 20,250 | – 50 | -50 | -500 |
| Ex-Rourkela | 125×125 mm, IS 2831 | 19,250 | + 50 | +50 | -750 |
| Ex-Raipur | 125×125 mm, IS 2831 | 19,750 | – 50 | -50 | -1,150 |
| Ex-Ahmedabad | 125×125 mm, IS 2831 | 22,000 | – 300 | -300 | -900 |
| Ex-Goa | 125×125 mm, IS 2831 | 20,300 | 0 | -400 | -1,400 |
| Ex-Jaipur | 125×125 mm, IS 2831 | 22,000 | + 200 | -100 | -1,050 |
| Ex-Jalna | 125×125 mm, IS 2831 | 21,300 | 0 | 0 | -1,100 |
| Ex-Mumbai | 100×100 mm, IS 2831 | 21,700 | 0 | +500 | -900 |
| Ex-Chennai | 125×125 mm, IS 2831 | 22,550 | 0 | +150 | +350 |
| Ex-Hyderabad | 125×125 mm, IS 2831 | 21,500 | 0 | 0 | -500 |
Basic prices in INR/MT
Source: SteelMint Research
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