Indian Billet Suppliers Cautious over Volatile Market

Domestic MS billet makers are worried about the direction the market might follow, as local demand from end-users has slowed down against last month.

Slowdown in demand from semi finish and finish steel markets has worried Indian MS billet manufacturers. A month ago, prices had increased persistently by INR 1,600-2,200/MT M-o-M due to healthy trade activities, which now seems to have fallen in domestic market.

Central India based brokers stated that demand this week is not as good as the previous week. However, manufacturers are unwilling to sell at low prices due to over booking of material and if the situation will continues, they may have to correct their prices.

Sharp decline in billet prices has been noticed in Maharashtra. In last 3 days, prices in Jalna and Mumbai have declined by INR 1,300/MT and INR 200/MT respectivaly amidst poor rebar sales and improved availbility of billet. Alongside, availbility of imported scrap may increase shortly as dispatches of booked material may complete this month.

North and West Indian markets have witnessed an uptick of INR 100-200/MT W-o-W in MS billet prices. While, ingot prices in these regions remain unalterted. In addition, south Indian market has remained almost stable as production has been halted for weekly 2 days in Hyderabad owing to stagnant sales.

MS billet prices as on 2 Sept’15

Prices in INR/MT; ex-works
Source: SteelMint Research