The daily Davis Index for billet in Raipur increased marginally by Rs100/mt ($1.34/mt) and settled at Rs35,400/mt ($465.14/mt) ex-works on Wednesday with very few bookings heard at increased prices. Billet buyers preferred to stay away from the market due to the risk of buying at such high prices. Ingot and billets prices are expecting minor price correction in the week because raw material prices of iron ore, pellet, Sponge iron and others is very high amid tight supplies, according to sources in Raipur.
Pellet Sponge offers remained firm at Rs25,500/mt ($343.65/mt) ex-works Raipur on high iron ore pellet prices. The index for rebar was up by Rs300/mt ($4/mt) to settle at Rs37,300/mt ($502.69/mt) ex-works, however, no booking were reported at increased prices. Induction Furnace (IF), Electric Arc Furnace (EAF) and rolling mills in Raipur are under cost pressure.
In Mumbai, the daily index for billet rose by Rs200/mt to settle at Rs36,000/mt ex-works due to uptick in imported scrap prices. The daily index for rebar was up by Rs300/mt and settled at Rs 39,500/mt ex-works.
Few steel mills in Mumbai said that rebar sales are good even at increased prices, however, booking were little less on Wednesday due to uncertainty in the finished steel market in near term.
In Mandi Gobindgarh, the daily index for ingot was up by Rs350/mt at Rs36,350/mt ex-works in line with increased local scrap prices. The index for rebar was up by Rs300/mt at Rs40,800/mt ex-works.