The daily Davis Index for billet in Raipur on Monday dropped by Rs300/mt ($4.08/mt) to Rs29,300/mt ($399.18/mt) ex-works due to a dip in trade activities along with significant drop in sponge iron prices. Pellet sponge decline by Rs500-700/mt to Rs19,000/mt ($258.85/mt) ex-works, with no takers being heard at these prices. The daily index for rebar also fell by Rs200/mt at Rs32,800/mt ($446.86/mt) ex-works owing to sluggish sales.
Steel mills in Raipur, primarily EAF and IF, had cut production to 60-65pc since last few days owing to margin pressure and limited buying, as per the market participants.
In Mumbai, the daily Davis Index for billet fell marginally by Rs100/mt ($1.36/mt) at Rs30,250/mt ($412.92/mt) ex-works. Billet offers were at Rs30,300/mt and bids at Rs30,200/mt but no deal were reported at index prices. The daily Index for rebar in Mumbai remained flat at Rs33,500/mt ($455.78/mt) ex-works due to limited trades.
In Mandi Gobindgarh, the daily index for ingot decreased by Rs200/mt to settle at Rs32,500/mt ($442.77/mt) ex-works in line with fall in scarp prices. The daily index for rebar was down by Rs200/mt at Rs37,500/mt ($510.89/mt) ex-works as weakening demand finished steel led to subdued trading.