The daily Davis Index for billet in Raipur Wednesday rose by Rs100/mt ($1.33/mt) to settle at Rs30,900/mt ($412.55/mt) ex-works with higher sponge iron prices in Central India.
Steel mills in Raipur opined that billet prices will remain firm in the domestic market till the export of iron ore and pellet continues. An integrated steelmaker in Raipur stuck a bulk export deal for pellets at around $129/mt cfr China for September shipment. Pellet sponge iron prices continued to remain high at Rs20,500/mt ex-works, up by Rs200/mt from the prior day. Additionally, pig iron price rose by around Rs2,000/mt in Central India this week.
Demand and price of finished steel, including rebar, is subdued in India and mills are facing margin compression amid higher input cost. The daily Davis Index for rebar settled flat on Wednesday at Rs33,900/mt ex-works Raipur.
In Mumbai, the daily Davis Index for billet increased by Rs200/mt and settled at Rs31,300/mt ex-works in-line with a rise in billet prices. The daily Davis Index for rebar rose by Rs300/mt to Rs33,900/mt ex-works Mumbai for the fifth consecutive day on Wednesday.
In Mandi Gobindgarh, the daily index for ingot rose by Rs650/mt and settled at Rs33,250/mt ex-works on a similar rise in ferrous scrap and sponge iron prices. The daily index for rebar rose by Rs300/mt at Rs37,950/mt ex-works Mandi Gobindgarh. The prices of billet increased more than rebar indicating mills are facing demand pressure.