Billet manufacturers in across major Indian markets have slightly raise prices by INR 100-300/MT, D-o-D. Decreased production and better demand led to increase in prices.
Current offer are – INR 21,000/MT ex-Raipur, INR 20,500/MT ex-Rourkela, INR 21,300-21,500/MT in Durgapur, INR 23,200/MT ex-Mumbai, INR 23,000/MT ex-Hyderabad & INR 24,000/MT ex-Chennai.
Trade participants reported that there is less selling pressure on billet manufacturers as most of them are running plants below capacity or it is almost closed.
Moreover, despite subdued demand and price volatile conversion spread in billet are supported, which is currently at INR 7,650/MT in Raipur & INR 8,300/MT in Rourkela from C-DRI; increased approximately by INR 500-900/MT, M-o-M.
In perspective the domestic billet price may remain volatile and the conversion spread will become strong as there is less supplier for the product.
Billet & Sponge prices with conversion spread
| Raipur | Rourkela | |||||
| Date | C-DRI | Billet | Conversion Spread | C-DRI | Billet | Conversion Spread |
| 23 Nov’16 | 13,350 | 21,000 | 7,650 | 12,200 | 20,500 | 8,300 |
| 16 Nov’16 (W-o-W) | 14,200 | 21,200 | 7,000 | 12,700 | 21,000 | 8,300 |
| 24 Oct’16 (M-o-M) | 13,600 | 20,300 | 6,700 | 12,700 | 20,550 | 7,850 |
Basic prices in INR/MT, C-DRI prices for 80 FeM mix material
Source: SteelMint Research
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