Indian Billet Prices fall upto INR 1,500/MT W-o-W (USD 24)

Slow demand and bearish outlook in global market has impacted Indian steel prices as well. Indian Billet prices corrected over INR 1,000-1,500/MT in last one week and INR 1,300-1,500/MT since 1 Mar, 2015.

Current prices for commercial grade Billet are hovering at INR 26,400/MT (Ex- Raipur), down by INR 1,300/MT W-o-W. Bengal based manufacturers are offering similar grade at INR 27,800/MT, down by 200/MT. Odisha prices are assessed at INR 26,400/MT (Ex- Jharsuguda).

Central India (Chattisgarh) based manufacturer Singhal Steel is offering Billet at INR 26,400/MT Ex-Raigarh, advance payment.

Indian steel prices which rose pre-budget on anticipation that government will impose import duty on rising imports from China and Russia, have nothing to cheer for. In recent union budget, government just hiked the peak rate of duty on imports by 5% (from 10% to 15%), however effective rates were kept unchanged.

Imported offers for Chinese Billet remain unaltered this week, with offers at USD 375-380/MT CIF India for April shipments. However Indian buyers are unwilling to take any certain positions amid quality concerns.

Billet offers as on 14 Mar, 2015

Basic prices, ED & VAT/CST exclude
Source: SteelMint research

Indian Sponge Iron prices fall Sharply

Sponge iron prices correct in line with falling Billet and Ingot prices. Improved supply from NMDC (NMDC cut Mar, 2015 prices by INR 300-500/MT) have resulted in increased production of Sponge iron in the central region.

Sponge Iron (C-DRI) Prices as on 14 Mar, 2015

Basic prices in INR/MT, ED & VAT/CST exclude
Source: SteelMint research