On June 20, SteelOrbis reported Indian domestic billet prices trending down to INR 36,200/mt ($531/mt) ex-mill Raipur (Chhattisgarh state in east central Indian) in reference to induction grade billet.
Sources inform SteelOrbis that trading has weakened and prices for induction grade billet are presently at INR 35,200/mt ($517/mt) ex-mill Raipur, down $14/mt from a week ago. A source reports an overall “weakness or tentative concern in trades that is evident in both softer prices in billets as well as pig iron.”
A source noted the recently announced pig iron price reduction by Neelachal Ispat Nigam Limited (NINL), the largest pig iron producer which is promoted by MMTC and two Odisha state government entities, and the lower export pig iron bids achieved by such companies as Steel Authority of India Limited (SAIL).
He added, “With pig iron prices decreasing $6-8/mt in the past few weeks both domestically and in export, billet buyers become more alert using relations and litmus tests. They are placing downward pressure on billet prices or staying in the sidelines waiting to see if prices in general will correct further.” NINL also announced earlier this summer that it would be “producing billet and value-added products to shore up NINL’s bottom line for 2018-2019.”
Around June 5, induction grade billet prices achieved a high of INR 37,500 ($559/mt) ex-mill Raipur.
USD = INR 67.13 (Jun 5)
USD = INR 68.15 (Jun 20)
USD = INR 68.11 (Jun 25)