Post imposition of MIP, semi finish prices had shown some sharp recovery, but had started to fall again on account of limited buyers at high price. However now, the market participants are anticipating some stability in prices due to hope of good buying with boost in infrastructure announcement in upcoming union budget.
On discussion with the sponge manufacturers and hot rolling mill operators based in central, east and west Indian markets, SteelMint assessed that they are hoping for positive buying sentiments in the market, if prices sustain at present level.
If the government will reduce export duty in high grade iron ore, it will directly affect Indian sponge market; lead to reduction in availability of raw material. Moreover, FICCI has also asked the government to raise import duty on all steel products to 25% in the upcoming budget.
Today, MS billet prices fell by INR 200-500/MT against the last day closing amid no or limited trade activities taking place. Current offers are prevailing at INR 21,750/MT ex-Durgapur, INR 21,150/MT ex-Rourkela, INR 22,400/MT ex-Raipur, INR 24,800/MT ex-Mumbai and INR 24,000/MT ex-Hyderabad.
MS billet prices as on 22 Feb’16
| Region | Particular | Prices | D-o-D |
| North India | Ex-Mandi Gobindgarh | 25,800 | – 100 |
| East India | Ex-Durgapur | 21,650 | – 300 |
| Ex-Jharsugda | 21,150 | – 300 | |
| Ex-Kolkata | 22,150 | – 200 | |
| Ex-Rourkela | 21,150 | – 300 | |
| Central India | Ex-Bhilai | 22,400 | 0 |
| Ex-Raigarh | 21,900 | – 100 | |
| Ex-Raipur | 22,250 | – 150 | |
| West India | Ex-Ahmedabad | 24,000 | – 600 |
| Ex-Bhavnagar | 23,800 | – 600 | |
| Ex-Goa | 21,800 | + 400 | |
| Ex-Jaipur | 24,600 | – 300 | |
| Ex-Jalna | 24,300 | – 200 | |
| Ex-Mumbai | 24,800 | – 200 | |
| South India | Ex-Chennai | 24,000 | + 450 |
| Ex-Hyderabad | 24,000 | 0 |
Prices in INR/MT
Source: SteelMint Research
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