The daily index for billet in Raipur remained flat on Monday at Rs30,000/mt ($408.71/mt) ex-works. Electric Arc Furnaces (EAF) and Induction Furnaces (IF) in Central India are worried about the narrowing spreads as inputs cost of sponge iron and scrap remained high, while ingot, billet and rebar prices have not increased due to sluggish demand. Pellet sponge offers were at Rs20,200/mt ($275.2/mt) ex-works, but no there were takers at these prices.
The daily index for rebar also remained flat to Rs32,650/mt ($444.82/mt) ex-works. Traders are expecting improvement in demand in the near term and witnessed some trade activities on Monday.
In Mumbai, the daily Davis Index for billet was down by Rs250/mt ($3.4/mt) from previous Friday and settled at Rs30,550/mt ($416.21/mt) ex-works on selling pressure. However, imported scarp prices in India rose to an 8-month high which is expected to support prices of billet and rebar. The daily Davis Index for rebar in Mumbai remained flat for the last 10 days at Rs33,900/mt ($461.85/mt) ex-works with limited trades.
In Mandi Gobindgarh, the daily index for ingot fell by Rs300/mt to settle at Rs33,000/mt ($449.59/mt) ex-works in line with fall in local scrap prices. The daily index for rebar was also down by Rs400/mt at Rs38,400/mt ($524.55mt) ex-works on slow demand.