Domestic billet prices increased upto INR 2,000/MT (10%) in Sep’16, M-o-M. However, lower conversion spread remains that poised Indian billet manufacturers.
In Sep’16, Indian billet makers were cheer full as prices surge post a long duration. Major price rise were seen in south India by around INR 2,000/MT followed by central, east & western regions by INR 1,500-1,800/MT.
However, lower conversion spread pull down Indian billet production. Raipur, Rourkela & Durgapur based merchant billet manufacturers reported production remains 70-80% due to high input cost on expensive raw material prices.
During the month, conversion spread (margins) between P-DRI and billet hit lowest levels of year ‘16 to INR 8,000-8,200/MT. Moreover, billet offers reached at 4 month’s high in major markets.
MS billet monthly average prices since Apr’16
| Month | Durgapur | M-o-M | Raipur | M-o-M | Rourkela | M-o-M | Mumbai | M-o-M | Chennai | M-o-M |
| Apr’16 | 22,650 | + 350 | 22,550 | – 100 | 21,750 | + 250 | 24,450 | 0 | 25,700 | + 150 |
| May’16 | 21,750 | – 900 | 21,550 | – 1,000 | 20,850 | – 900 | 23,250 | – 1,200 | 24,150 | – 1,550 |
| Jun’16 | 20,600 | – 1,150 | 21,000 | – 550 | 20,100 | – 750 | 22,650 | – 600 | 22,200 | – 1,950 |
| Jul’16 | 19,750 | – 850 | 19,900 | – 1,100 | 19,100 | – 1,000 | 21,450 | – 1,200 | 22,050 | – 150 |
| Aug’16 | 19,650 | – 100 | 19,750 | – 150 | 18,950 | – 150 | 21,450 | 0 | 21,450 | – 600 |
| Sep’16 | 21,150 | + 1,500 | 21,400 | + 1,650 | 20,750 | + 1,800 | 23,100 | + 1,650 | 23,350 | + 1,900 |
Basic prices in INR/MT
Sources: SteelMint Research
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