Today, Indian billet market opened with a price correction of INR 100-200/MT against yesterday trades. Suppliers are pressurized to cut offers due to poor enquiries by rolling mills. However, south (Chennai) based few large manufacturers have increased billet offers by around INR 500/MT due to few bulk rebar deals yesterday.
Market players mentioned that plunge in raw material prices (sponge & scrap) may provide support to Indian billet prices. However, viewing dull demand, it seems that prices will remain under pressure.
Highlights
1. Shyam Sel in Durgapur reported captive consumption for billet. Thus, plant is not selling material in the market. An official mentioned that billet prices will remain under pressure here due to capacity expansion by few large manufacturers. This is likely to provide support to sponge prices.
2. Gobindgarh (Punjab) based traders mentioned that they are getting billet from Rourkela at INR 19,000-19,100/MT and Durgapur at INR 20,000/MT (ex-plant). Billet offers in Gobindgarh are assessed at INR 23,300/MT for 100*100 mm on ready delivery.
3. Shakti Ferro, a Chennai based integrated plant and price trend decider in the market, has increased billet offers at INR 25,500/MT and rebar at INR 29,000/MT. Offers are including 12.5% ED and excluding VAT/CST.
MS billet prices as on 13 Jul’16
| Region | Particular/Delivery | Prices | D-o-D | W-o-W | M-o-M |
| North India | Ex-Mandi Gobindgarh | 23,300 | – 100 | + 200 | -500 |
| East India | Ex-Durgapur | 20,000 | – 150 | + 350 | -350 |
| Ex-Jharsugda | 19,200 | – 200 | + 200 | -700 | |
| Ex-Kolkata | 20,400 | – 150 | + 250 | -350 | |
| Ex-Rourkela | 19,200 | – 200 | + 200 | -700 | |
| Central India | Ex-Bhilai | 20,000 | – 100 | + 50 | -900 |
| Ex-Raigarh | 19,900 | 0 | 0 | -550 | |
| Ex-Raipur | 20,000 | – 100 | -50 | -900 | |
| West India | Ex-Ahmedabad | 22,400 | – 200 | + 100 | 0 |
| Ex-Bhavnagar | 22,200 | – 200 | + 100 | 0 | |
| Ex-Goa | 20,700 | 0 | -300 | -1,000 | |
| Ex-Jaipur | 22,200 | – 150 | 0 | -700 | |
| Ex-Jalna | 21,300 | 0 | -200 | -900 | |
| Ex-Mumbai | 21,200 | – 100 | -100 | -1,200 | |
| South India | Ex-Chennai | 22,400 | + 650 | + 650 | + 200 |
| Ex-Hyderabad | 21,500 | 0 | -500 | -500 |
Prices in INR/MT
Source: SteelMint Research
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