MS billet prices remained volatile due to global clues of revival and change in domestic fundamentals.
Domestic billet market has shown some positive sign on 21 May’15 owing to global clues of revival and increase in power tariff by INR 0.36 paise/unit in Mandi. However, negative domestic sentiments regarding low input cost and low finish demand have kept prices volatile.
Indian billet prices are hovering in the range of INR 25,000-27,500/MT (USD 385-423/MT) Ex-works. While, billet prices in global market remained firm at USD 375/MT, FoB Black Sea. Chinese billet offers are assessed at USD 375/MT, CIF India.
Trade Dynamics
1. Indian Pig iron prices have weakened by INR 300-500/MT W-o-W to INR 17,500-19,200/MT (USD 270-295/MT) Ex-works. While, Indian Pig iron export prices assessed at USD 262/MT, FoB East Coast. Pig iron prices in global market have raised by USD 10/MT and currently Russia is offering the material at USD 270/MT, FoB Black sea.
2. Imported HMS scrap prices remained stable at USD 275-282/MT. Shredded scrap is being offered at USD 302-305/MT. However, bulk ship breaking offers have moved up by USD 5-10/MT as number of ships to break have reduced.
3. Sponge iron prices are under pressure due to increased supply of iron ore and shifting of major producers from pellet to iron ore. Currently, C-DRI offers in Raipur are assessed at INR 16,500-17,500/MT (-500; 78-82 FeM), Durgapur at INR 16,900-17,200/MT (- 900; 78-80 FeM) and Bellary at INR 15,600-16,100/MT (- 200; 78-82 FeM).
Raw Material and Semi Finish Prices as on 22 May’15
| Place | Sponge Iron (FeM) | W-o-W | Sponge Pellet | W-o-W | HMS Scrap | W-o-W | MS Ingot | W-o-W | MS Billet | W-o-W |
| Mandi | 20100 (78) | 0 | 18,200 | -300 | 21,000 | -250 | 29,000 | -450 | 29,400 | -350 |
| Raipur | 17,600 (82) | -600 | 15,500 | -400 | 20,500 | 0 | 24,600 | -400 | 25,200 | -500 |
| Durgapur | 16,900 (78) | -900 | 14,800 | -800 | 19,900 | -1,000 | 25,000 | -750 | 25,250 | -750 |
| Mumbai | NA | – | NA | – | 20,450 | 0 | 27,100 | -500 | 27,300 | -400 |
| Ahmedabad | NA | – | NA | – | 21,400 | -650 | 26,500 | -500 | 27,000 | -300 |
| Hyderabad | 17,400 (83) | -400 | 15,000 | -500 | 20,800 | 0 | 26,300 | -700 | 26,300 | -500 |
Basic prices in INR/MT; ED/VAT Extra
Source: SteelMint Research
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