Indian Billet Offers Increase on Sponge Price Rise

Today, billet manufacturers in domestic market have raised their offers further by INR 100-400/MT against yesterday’s trade. As per sources, constant rise in sponge offers is supporting billet offers. However, trades are average at current increased offers. Presently, prices are prevailing in the range of INR 19,000-22,800/MT, ex-works.

Major market price scenario

Raipur: Demand from out of the states is not supportive. Earlier, Raipur was majorly selling billet to north regions. But now, north based buyers are purchasing material at cheaper rates offered by Gujarat based manufacturers.

Durgapur: Increase in ingot export coupled with a sharp sponge price rise is supporting billet market in Durgapur. Price gap between ingot and billet has widened to INR 100/MT from earlier INR 300-500/MT.

Rourkela: Billet export from Rourkela to Nepal continues. Despite lull demand from north region, billet offers are strong in the market. Current offers for domestic buyers are assessed at INR 19,000/MT. However, export offers are higher by INR 100-200/MT.

Mandi Gobindgarh: Some shortage of material has been reported by billet traders due to holidays in the starting of current week. Today, offers for 100*100 mm billet are accessible at INR 22,850-22,900/MT for ready delivery.

Hyderabad/Chennai: Offers by large manufacturers remain unaltered. Vaksh Steel is offering billet at INR 21,000/MT ex-Hyderabad. In Chennai, prices are prevailing at INR 24,000/MT (including ED and excluding VAT).

Sponge & MS billet prices as on 17 Aug’16

Basic prices in INR/MT
Source: SteelMint Research