Indian Billet Prices Likely to Remain Range Bound

Domestic MS Billet price which surge by INR 1,800-2,500/MT after imposition of MIP may remain range bound in coming days.

Market participant in large agree that market should be minor fluctuate from the current levels looking to increase in Sponge, scrap & pig iron prices. They added demand of Finish steel also will improve as prices stablise.

Looking to tight situation in raw material prices, Billet manufacturers from Raipur & Durgapur mentioned that they are not willing to reduce offers unless sponge & pig iron price come down . Market participant in large agree that market should stablise +/-500/MT from present level.

“Market should not look MIP as benchmark price as it will change steel operation- due to cheaper scrap import, production in West and North India will rise. After span of 2 weeks prices will be on demand and supply basis not MIP sentiments” said director of integrated steel plant located in Durgapur.

Market Highlights:

1. Sponge offers in Indian domestic market gain upto INR 1,500/MT in last 5 days.
2. NINL raises pig iron prices by INR 700/MT; offers valid till 16th Feb’16
3. Imported scrap offers to India rise upto USD 10/MT in this week
4. SAIL, has upheld its 15,000 MT billet export tender, which expired last week due to Impositon of MIP as domestic billet prices rise sharply
5. Bangladesh prefers Indian billet over Chinese amid Zero Import Duty under SAFTA. In addition to cheaper cost and low transition time, Indian billet quality is superior than Chinese material.

Domestic Billet offers as on 12 Feb’16

Basic prices in INR/MT
Source: SteelMint Research