Billet makers in major producing states like Chhattisgarh, Odisha and West Bengal reported lack of viability in supplying billet to outside states. Improvement in local demand is currently only the positive factor for market sustainability at current offers.
Generally, in order to supply semis products to outside states, manufacturers require a price gap between seller and buyer markets, which is not supportive at present. For an instance, local billet price in Gobindgarh is INR 25,400/MT and INR 22,500/MT in Durgapur. Adding freight charges and CST, it will make FoR offers to INR 25,600/MT, which is unviable.
Manufacturers further added if demand from outside market will be unsupportable, offers are likely to decline in days to come.
Required and current price gap to supply billet
| Seller Market | Buyer Market | Required Price Gap to Supply Billet (compared to basic prices) |
Current Price Gap |
| Raipur | Gobindgarh | 3,500-4,000 | 2,400 |
| Mumbai | 2,500 | 1,300 | |
| Jalna | 2,000 | 1,300 | |
| Durgapur | Gobindgarh | 3,500 | 2,900 |
| Ghaziabad | 3,000-3,500 | 2,500 | |
| Bhiwadi | 3,000-3,500 | 2,500 | |
| Rourkela | Gobindgarh | 4,000-4,500 | 3,600 |
| Mumbai | 3,000-3,500 | 2,500 | |
| Jalna | 3,000 | 2,500 | |
| Bhiwadi | 4,000 | 3,200 |
Price gap in INR/MT
Source: SteelMint Research
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