Today, MS billet prices have surged sharply by INR 500-1,000/MT over government’s new initiative of MIP imposition on specific steel products.
MS billet prices in domestic market seems to be moving towards positive side. Today, market has shown good recovery as prices have surged by INR 500-1,000/MT across major Indian markets. The rise in prices is supported by recent imposition of minimum import price. The government levied MIP on billet at USD 362/MT (INR 24,250/MT + 10% Custom Duty).
Major price hike is seen in Mumbai (+1,000), followed by Raipur (+950), Chennai (+900) and Durgapur (+550). Currently, billet makers are offering material in the range of INR 21,150-24,000/MT in domestic market.
MS billet prices as on 8 Feb’16
| Particular | Prices | D-o-D | W-o-W |
| Ex-Mandi Gobindgarh | 25,100 | +500 | +2,300 |
| Ex-Durgapur | 22,350 | +550 | +2,750 |
| Ex-Rourkela | 21,150 | +400 | +2,550 |
| Ex-Raigarh | 22,200 | +700 | +2,550 |
| Ex-Raipur | 22,750 | +950 | +2,800 |
| Ex-Ahmedabad | 23,700 | -100 | +1,900 |
| Ex-Jalna | 22,950 | 0 | +950 |
| Ex-Mumbai | 24,000 | +1,000 | +2,000 |
| Ex-Chennai | 23,100 | +900 | +1,750 |
| Ex-Hyderabad | 24,000 | 0 | +3,000 |
Prices in INR/MT
Source: SteelMint Research
Trade dynamics
1. RS Ispat based in Raigarh is offering billet at INR 22,200/MT, ex-plant. Manufacturers are still seeking further clarity on MIP to give market direction.
2. Drolia Electro Steel in Raipur quoted billet at INR 22,800/MT, ex-works. Last trade in Raipur was heard at INR 22,500/MT.
3. Billet buying from Durgapur to Gobindgarh has weakened with closing of trade at INR 22,000-22,200/MT.
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