MS billet prices in Indian market continue to decline amidst seasonal slowdown and declining scrap prices in global market. Current prices for commercial grade 120*120 mm billet are assessed at INR 22,700/MT (USD 354/MT) ex-Raipur; have down INR 900/MT W-o-W and INR 2,700/MT M-o-M.
Billet prices in other parts of the nation are also declining persistently. Prices in Mumbai were assessed at INR 23,700/MT (USD 370/MT) and Chennai at INR 25,050/MT (USD 390/MT).
Prices Hit 5 Years Low
Domestic billet prices have touched 5 years low levels, which were last seen in Sep’10. Steelmakers using induction or electric arc furnaces are currently tussling with huge losses. Many plants have either reduced their production or have shutdown completely. In future prospect, steelmakers are hopeful that prices will stabilize at these levels.
As per World Steel Association data analysis, Indian crude steel production increased by 4% in H1 2015, but demand hasn’t improved in that proportion.
Global Impact
Low-priced Chinese billet is one of the major reasons for declining billet prices in Indian market. Although, India is not a direct billet importer, cheaper offers from China is affecting Indian market too. For an instance, Chinese billet offers to countries like Taiwan, Turkey and Korea have made steelmakers to go for importing billet rather than buying scrap and melting it.
Scrap prices in global market have corrected about USD 30-35/MT in last one month owing to high availability of Chinese billet.
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