Domestic billet prices, which recently surged around INR 700/MT post imposition of safeguard duty, have rolled back today amid limited buyers in local market.
Alongside, upcoming holidays for 1-2 days are going to affect domestic market activities. There will be a slowdown in production, which could lead to halt in dispatches and payments.
Market participants are waiting for stability and improvement in buying activities.
Trade-wise
1. Price gap between ingot and billet has widened to INR 700-800/MT from INR 500-600/MT in Raipur
2. Manufacturers are unwilling to purchase material at cheaper prices as they already sold material in bulk
3. Bhaskar Ispat based in Odisha is offering billet at INR 23,500/MT ex-Bonai (advance payment)
4. North India based melters are buying billet from Durgapur and Raigarh than Raipur owing to cheaper freight charges by INR 300-400/MT from Durgapur and Raigarh to North
5. Billet offers are similar in Mumbai and Jalna as well as in Durgapur and Raipur
Billet & C-DRI prices as on 16 Sept’15
| Particular | Billet | Change | C-DRI (FeM) | Change |
| ex-Gobindgarh | 27,300 | -500 | 18,200 (78) | -100 |
| ex-Raipur | 24,200 | -500 | 16,000 (80) | -200 |
| ex-Rourkela | 23,500 | -300 | 13,500 (78) | -200 |
| FoR Durgapur | 24,300 | -500 | 15,400 (78) | -250 |
| ex-Hyderabad | 24,500 | -500 | 14,200# (80) | 0 |
Prices in INR/MT; Payment next day/RTGS
#P-DRI prices
Source: SteelMint Research
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