All hopes of the market improving on Monday dashed when no buying was reported in the opening hours of the day, forcing sellers to reduce prices to encourage trading. Consequently, trading picked-up in the second half.
The daily Davis Index for billet in Raipur slipped by Rs900/mt ($12.28/mt) at Rs38,100/mt ($519.99/mt) ex-works on Monday from Friday. Billet sellers reduced offers looking at weak buying and managed to sell material at lower prices. Some billet deals were reported at Rs38,000-38,100/mt for outstation market.
Pellet Sponge prices are firm at Rs25,500/mt ($348.02/mt) ex-works Raipur while the index for rebar remained flat at Rs43,000/mt ($586.87/mt) ex-works Raipur – with very few takers.
In Mumbai, the daily index for billet dropped by Rs300/mt to settled at Rs40,000/mt ex-works. Few billet deals were reported at Rs40,200/mt, but beyond that no deals were heard. The index for rebar remained unchanged at Rs46,900/mt amid subdued trading activity.
In Mandi Gobindgarh, the daily index for ingot fell by Rs400/mt to Rs38,000/mt, in line with decrease in local scrap prices. Steel mills are witnessing weakening of demand for finished steel though there is enough supply.