Prolong subdued demand and continuous fall in raw material prices have breached MS billet prices at an all time low levels, as per data maintained by SteelMint since Sept’10.
MS billet makers in one of the major market, Raipur is offering at the lowest level of INR 21,000/MT. While in Mumbai, prices have touched at INR 22,800/MT this week.
India’s steel consumption generally picks up in December along with construction activities. But, weak demand and a sense of insecurity could mute any price hike in December.
In-line with billet, finish and other intermediary product prices have corrected to over 5 years low. Raipur, which is the largest steel producing region of secondary steel makers in the country, has noticed a sharp fall in sponge and rebar prices.
Current prices for sponge iron are in the range of INR 13,00-13,500/MT (ex-works) and rebar at INR 22,500-23,500/MT (ex-works). These levels were last seen in 2008, when global recession had hit commodity prices.
Similar trend was noticed in Mumbai, Chennai, Mandi Gobindgarh and Kolkata. Market participants expect prices have almost bottomed out and there is limited scope of corrections.
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