Domestic mill operators were unwilling to purchase high-priced raw material and postponed buying until prices corrected.
Post surge in prices amidst power disruption in Urla based industries, MS billet prices in Raipur (central India) have slumped by INR 800/MT in a week. The major cause of price correction was buyers postponing buying until prices corrected. In addition, prices in Durgapur and Rourkela (East India) have also declined by INR 300/MT in a week. Currently, MS billet in Raipur is being traded at INR 25,300/MT, while in Rourkela, the material is available at INR 24,600/MT and Durgapur at INR 25,000/MT.
Hike in Custom Duty Unlikely to Impact Indian Semi Finish Market
Recent hike in custom duty from 5% to 7.5% on ingot/billet/slabs is unlikely to impact Indian semi finish market as these materials have been imported in limited quantities and only to coastal areas.
Meanwhile, MS billet prices in Mumbai have declined by INR 300/MT, while offers surged in Chennai by INR 300/MT in a week.
Billet/Slab Import to India
| Month | Quantity |
| Jan’15 | 88,000 |
| Feb’15 | 17,000 |
| Mar’15 | 8,000 |
Quantity in MT
Source: JPC-Ministry of Steel
Future Prospects
In current scenario, it seems that semi finish production across India has thinned out. However, it is anticipated that in coming weeks, production will boost up post resolution of problem of power cut in few states. This in turn will further impact semi finish prices.
On the other hand, Turkish mills have started to consume more MS billet compared to imported scrap owing to low-priced billet offered by China. If Indian billet makers will not reduce prices in tune to global offers, a similar situation may arise in India too.
Raipur Semi Finish & Finish Long Prices as on 19 June’15
| Particular | Prices | Change | W-o-W | M-o-M | Q-o-Q | Y-o-Y |
| C-DRI (80 FeM) | 16,500 | – 50 | NA | – 200 | – 1,200 | – 5,150 |
| P-DRI (80 FeM) | 14,350 | 0 | – 250 | – 600 | NA | NA |
| MS Ingot | 24,750 | 0 | – 600 | + 250 | – 1,300 | – 6,000 |
| MS Billet | 25,300 | – 50 | – 800 | + 100 | – 1,200 | – 5,950 |
| Rebar (12 mm) | 29,300 | – 200 | – 1,400 | + 400 | – 800 | – 6,000 |
Basic prices in INR/MT
Source: SteelMint Research
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