Semi Finished Steel demand to increase as North India furnace has either cut their production or taken a shut down. Shortage of Scrap is started seeing its effect on industrial production in North and Western India as SteelMint learned furnace in Gujarat, U.P, and Maharashtra are closing down due to high cost of production due to scrap and electricity cost, whereas selling price are under pressure due to low finish sale.
“Demand of MS Ingot/Billet will rise as plant are operating in low capacity in wada” said Mumbai based TMT manufacturer. Similarly Alang, (Gujarat) based plate cutting mill also said, “Finish demand is under pressure but non viability of Ingot forced plant to reduce their production”. A well known trader located in Nasik said, “Today we have very limited seller of Billet”
SteelMint learned, demand of Sponge Iron from Bellary that has been increased by Rs 500/t yesterday is due to demand from Maharashtra and Gujarat. Present price of Sponge Iron in Bellary is at Rs 18600-800/t (Basic), Raipur ((Chhattisgarh) Sponge Iron is trading at Rs 18,800-19,000/t (Basic). Yesterday Raigarh (Chhattisgarh) also increased its price by Rs 200/t on increased demand from North India, present offer is at Rs 18400-500/t
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