Indian Billet Prices Stable; falling Global Market a Threat

Indian Billet prices seem to have find some support though falling prices in the global market remain a big threat.

Prices of Billet, having sulphur and phosphorus content over 0.055%, are hovering in the range of INR 28,000/MT-30,000/MT (USD 450-485)  ex-works. Prices have corrected upto INR 1,500-2,000/MT M-o-M.

Falling offers from Chinese and CIS based Billet exporters have become a big challenge for Indian manufacturers as well. Sources mentioned that they are getting offers from China at around USD 450-460/MT CIF India.

On similar lines, export offers from CIS region have corrected sharply. Some deals were heard to settle at around USD 410/MT FOB Black Sea.

Indian manufacturers reported, “Though prices are at the same level, demand is yet to pick up. Some also believe that stable offers of imported Scrap and falling Rupee should support Billet prices at current levels.”

Key Highlights

1. Indian Billet prices are in the range of INR 28,000-30,000/MT ex- works
2. Imported Scrap offers find some support at USD 305/MT. Market expects limited scope of correction
3. Imported Billet offers are around USD 450/MT CIF India port
4. RINL’s Billet export tender, closing on 1 Dec’14, is likely to get low bids owing to falling global prices. Last tender fetched bids at USD 467/MT FOB India

Trade Wise
1. Some deals concluded from Raipur (Central) to Mandi (North) at INR 28,000-28,300/MT; freight to Mandi is INR 2,500/MT
2. Raigarh based manufacturers are suppling Billet to Ghaziabad at INR 28,000/MT; freight to Ghaziabad is INR 2,300-2,400/MT

 Global & Domestic MS Billet Prices as on 25 Nov, 2014

Source: SteelMint Research