Lesser buyers than sellers in domestic market has led to further corrections in billet prices. Today, prices have declined by INR 100-400/MT against the last day closing.
The numbers of sellers have increased in the market due to constant pile-up in inventory levels; leading to selling pressure on manufacturers.
Current offers for 125*125 mm billet are prevailing in the range of INR 19,600-22,300/MT.
MS billet prices as on 27 Jan’16
| Particular | Prices | D-o-D | W-o-W |
| Ex-Mandi Gobindgarh | 23,600 | 0 | -500 |
| Ex-Durgapur | 20,300 | -100 | -850 |
| Ex-Jharsugda | 19,600 | -350 | -850 |
| Ex-Rourkela | 19,600 | -350 | -850 |
| Ex-Raigarh | 19,700 | -200 | -1,200 |
| Ex-Raipur | 20,200 | -50 | -1,050 |
| Ex-Ahmedabad | 22,100 | -400 | -1,350 |
| Ex-Jalna | 22,200 | -300 | -500 |
| Ex-Mumbai | 22,300 | -200 | -500 |
| Ex-Chennai | 21,600 | -200 | -200 |
| Ex-Hyderabad | 21,500 | 0 | -500 |
Prices in INR/MT
Source: SteelMint Research
Current Trade Dynamics
1. Ghaziabad (U.P) based buyers are purchasing MS ingot/billet from Durgapur and Rourkela. Freight from Durgapur is assessed at INR 2,500/MT and from Rourkela at INR 2,900/MT.
2. Durgapur and Raipur based manufacturers are selling billet to Gobindgarh. Freight from Raipur to Gobindgarh is INR 2,400/MT and from Durgapur is in the range of INR 2,500-2,600/MT.
3. Few large manufacturers in Durgapur, who are producing sponge, billet and rebar in bulk quantities, reported to sell material mostly through CST billing (outside states).
4. Manufacturers in Hyderabad offered ingot/billet at INR 21,500/MT, but buyers are willing to purchase at INR 21,000-21,200/MT.
5. Less merchant billet sellers in Jalna led to marginal fall in billet prices as compared to price corrections in rebar.
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