Domestic billet is currently trading at a 3-month high level with steep price rise of INR 1,100-1,500/MT W-o-W across major markets.
INR depreciating to 66/USD, slight improvement in domestic demand and expected imposition of safeguard duty are catalyzing Indian billet markets; prices hiked upto INR 1,500/MT in a week.
Currently, billet prices across major markets are – Durgapur at INR 24,100/MT (+ 1,400), Rourkela at INR 23,400/MT (+ 1,400), Raipur at INR 24,100/MT (+ 1,150), Mumbai at INR 26,000/MT (+ 1,200), Chennai at INR 23,750/MT (+ 200) and Hyderabad at INR 25,000/MT (+ 1,500).
Recently, RINL has also floated an export tender for 27,500 MT blooms to Nepal with a deadline of 14 Sept’15.
Meanwhile, devaluation in Chinese currency, Yuan has stared to show its impact on export offers as Chinese billet offers to Bangladesh have fallen by USD 10/MT to USD 315/MT CFR Bangladesh.
Chinese steel at such a competitive prices has created panic among other nations worldwide. In outlook, it seems that although China’s export realization has increased, billet prices are likely to be range bound amidst expectation of safeguard duty imposition.
MS billet prices as on 27 Aug’15
| Particulars | Prices | W-o-W |
| Ex-Durgapur | 24,100 | + 1,400 |
| Ex-Rourkela | 23,400 | + 1,400 |
| Ex-Raipur | 24,100 | + 1,150 |
| Ex-Ahmedabad | 25,900 | + 900 |
| Ex-Jalna | 26,200 | + 1,150 |
| Ex-Mumbai | 26,000 | + 1,200 |
| Ex-Chennai | 23,750 | + 200 |
| Ex-Hyderabad | 25,000 | + 1,500 |
Prices in INR/MT; ex-works
Source: SteelMint Research
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