Indian Billet Prices find support on good Export Parity

• Billet prices up by INR 700-1,500/MT (USD 12-24/MT)
• Eastern India’s Billet manufacturer focusing more on exports
• Rupee volatile at around 62.53/USD

Billet prices in Indian domestic market have find strength on decent export parity which is being offered at USD 510-520/MT FOB Indian East Coast to Bangladesh buyers and USD 505-515/MT FOB India to re-rollers in Thailand.

In a month’s time domestic Billet prices have gone up to INR 700-1,500/MT owing to good demand in domestic market as well as export market.

Volatile Indian Rupee against USD and improved demand in Finished Steel increase parity in exports, have prompted Indian steel mills to raise offers by INR 700-1,500/MT (USD 12-24/MT) in last one month in India’s domestic market.

According to trade sources, current offers from private manufacturers are made in the range of INR 29,700-29,800/MT (USD 475-477/MT) on Ex-Rourkela basis & Durgapur Ex-Plant at INR 30,800-30,900/MT (USD 492-493/MT).

Market players confirmed that from past few days Rourkela continuing export Billet to Nepal & Bangladesh. Around 1,500-2,000/MT Commercial grade Billet Sold from Rourkela to Nepal & Bangladesh at INR 29,500-29,700/MT (USD 468-472/MT, Ex-Rourkela)

However, Durgapur also offers Billet at INR 30,800-31,000/MT to Nepal. High prices of material as compared to Rourkela market, buyers are cautious to purchase Billet from Durgapur. As a result, Durgapur Billet prices slightly fall by INR 200/MT W-o-W.

[su_quote cite=”Industry experts commented”]At present, there is no expectation of revival in Indian steel prices and also steel prices in global market are getting better. Current offers for Billet (commercial grade, Ex Works) in domestic market are at around INR 29,700-33,700/MT (USD 475-540/MT), offers higher by INR 500-7,00/MT from last week.[/su_quote]

 Billet Prices in INR/MT as on 05 Feb, 2014

Basic Prices
Excise duty @12.36%; VAT as applicable
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