Indian Billet Offers Up On a Positive Note

Indian billet prices which had hit all time low last month, are now seen in positive note as offers are increasing continuously on day on day basis. Today prices further moved up by INR 50-150/MT in major markets.

Where as offers in southern India remains unchanged and as per manfucturers trades are taking place at current offers and prices may improve anytime soon.

Current offers are prevailing at INR 20,100/MT ex- Raipur, INR 19,800/MT Durgapur, INR 19,100/MT ex-Rourkela, INR 21,400-21,500/MT Mumbai and INR 21,000/MT ex-Hyderabad.

Highlights

Raipur: Since 1st Aug’16 production cut continues by merchant ingot/billet manufacturer. As per manufacturers they will continue the strike till the goverment will not provide any relief to them. The manufacturer’s major demand is to reduce power tariff from current INR 6.19/unit to INR 4.00/unit.

Durgapur: Resumption of ingot export to nearby countries have narrowed down price gap between ingot & billet. At present offers are almost similar for both the products at INR 19,700-19,800/MT.

Rourkela: As per trade sources, few large manufacturers have started taking active participation in exports and have exported billets to nearby countries i.e. Nepal & srilanka.

Mumbai: Recently, from 1st Aug’16 few other hot rolling mills and merchant billet makers have shifted production to night shifts only. As a result since starting of this week billet prices in the market have gone up by INR 300-400/MT.

Mandi Gobindgarh: Billet supply from eastern markets (Durgapur & Rourkela) have been affected due to logistics issues. Owing to shortage of vehicles carrying them billet supply has been adversely impacted. Eastern India is the largest supplier for semis to all markets across India.

Hyderabad: Vaksh Steels a merchant billet seller with current production of 300 MT per day has kept offers unchanged at INR 21,000MT.

Indian billet offers as on 03 Aug’16

Basic prices in INR/MT
Source: SteelMint Research