Domestic billet makers today inched up their offers by INR 100-300/MT against the last day closing. This month, prices fell by INR 400-600/MT compared to two weeks earlier prices. However, south Indian market has showed no change in prices.
Besides, conversion spread (margins) of billet manufacturers have also improved as billet prices in Durgapur/Rourkela gained by INR 600/MT M-o-M. Whereas, sponge iron offers remained firm in the duration.
However, scrap based market have been continuously tussling with rising imported scrap offers and limited water supply.
“Steel production in Maharashtra is low due to limited water supply and increase in finish steel inventory due to non viability in Gujarat”, shared a re-rolling manufacturer in Mumbai.
It is also heard that Vizag Steel concluded an export tender for 40,000 MT material (30,000 MT bloom and 10,000 MT billet) at around USD 362-363/MT, FoB Vizag Port (Indian East Coast).
As on 21 Apr’16, 125*125 mm billet prices are hovering in the range of INR 21,600-25,350/MT.
Current MS billet prices in domestic market
| Particular | Prices | D-o-D | W-o-W | M-o-M | Q-o-Q |
| Ex-Mandi Gobindgarh | 25,300 | 150 | -350 | 100 | 1,700 |
| Ex-Durgapur | 22,450 | 50 | -450 | 600 | 2,450 |
| Ex-Rourkela | 21,600 | 150 | -250 | 600 | 2,400 |
| Ex-Raipur | 22,150 | 150 | -450 | -300 | 2,400 |
| Ex-Jalna | 24,000 | 0 | -400 | 200 | 1,800 |
| Ex-Mumbai | 24,200 | 0 | -250 | 200 | 2,200 |
| Ex-Chennai | 25,350 | 0 | -450 | -400 | 3,750 |
| Ex-Hyderabad | 24,500 | 0 | 0 | 0 | 3,000 |
Prices in INR/MT
Source: SteelMint Research
Today’s key trade dynamics
1. Billet (100*100, 125*125 mm) from Raipur to Jalna is sold at around INR 23,800/MT on FoR basis. While, local manufacturers in Jalna are offering the same size material at INR 24,000-24,200/MT.
2. Billet in Mandi Gobindgarh is traded at around INR 25,300/MT in local market.
3. West Bengal based billet producers continue to receive lucrative export offers compared to domestic demand. Export offers received are INR 22,600-22,700/MT ex-plant (controlled BIS chemistry) compared to domestic offers at INR 22,400-22,500/MT.
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