MS Ingot/Billet manufacturers have reduced their production by 30-40% across India owing to falling margins. SteelMint while speaking with manufacturers assessed that most of the secondary steel producers have reduced their production on the grounds of high input cost and low selling price of produced material (Sponge iron & MS Ingot/Billet).
It is also assessed that Rebar & Structure manufacturers have already cut down their production by upto 40% to maintain the inventory levels since Aug’14 onward. Also, import of Rebar & Wire from China is continuously pressurizing Indian Long steel manufacturers either to cut production or reduce the offers since last few months.
Central India based MS Ingot/Billet makers have also cut down their production owing to low off-take of produced material. The prime reason behind this is buying from MP, UP, Punjab & Maharashtra totally halted because of equal prices in Central India (sellers’ market) and North/West India (buyers’ market).
Market participants expect that price correction is likely to continue because of falling global market, which in turn increasing import of Scrap & Iron ore as well as finished steel from China. It will further pressurize Long steel prices in coming weeks.
Key Highlights
- Indian Steel Ministry desires to control import of non-BIS Chinese Rebar; decision to be taken soon
- Domestic Scrap is trading higher by INR 1,000-1,500/MT against landed cost of imported Scrap
- Indian Billet prices down by INR 300-1,500/MT W-o-W and INR 700-2,000/MT M-o-M
- Indian importers claim to have offers for Chinese Billet (Commercial grade) at around USD 445-450/MT CIF India
- Export offers from Russia/Ukraine are around USD 458/MT FoB Black sea; down by USD 40/MT M-o-M
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