The daily Davis Index for billet in Raipur on Tuesday was marginally up by Rs50/mt ($73.63/mt) to Rs29,350/mt ($398.61/mt) ex-works due to increase in sponge prices in Central India. Pellet sponge offers went up by Rs200/mt to Rs19,200/mt ($260.86/mt) ex-works, but no deals were heard at this price. The daily index for rebar flat at Rs32,800/mt ($445.65/mt) ex-works with marginal rise in buying activities.
In Mumbai, the daily Davis Index for billet was marginally up by Rs50/mt at Rs30,300/mt ($411.68/mt) ex-works. Few deals were reported at index price. The daily Index for rebar in Mumbai remained flat for the second day at Rs33,500/mt ($455.16/mt) ex-works on limited trades.
In Mandi Gobindgarh, the daily index for ingot was up by Rs100/mt to settle at Rs32,600/mt ($442.93/mt) ex-works in line with increase in scarp prices. The daily index for rebar was up by Rs100/mt at Rs37,600/mt ($510.86/mt) ex-works.
In Durgapur, the bi-weekly index for rebar rose by Rs275/mt ($3.73/mt) to Rs33,300mt ($452.2/mt) ex-works on Tuesday from 33,025/mt ($448.4/mt) last Thursday with a few deals reported at the index price.
Manufacturers are using the wait-and-watch approach as they expect the finished steel prices to rise by the end of this week. They also anticipate an increase in demand for finished steel by October. The index for billet rose by Rs200/mt ($2.71/mt) to Rs30,700 ($416.8/mt) ex-works Durgapur.
In Chennai, the bi-weekly Davis Index for rebar increased by Rs250/mt ($3.39/mt) to Rs 35,500/mt ($482.07/mt) from Rs35,250/mt ($478.6/mt) in the prior week amid a lull in demand. The index for billet remained unchanged at Rs31,200/mt ex-works Chennai.
In Jalna, the bi-weekly index for billet decreased in line with the fall in rebar prices by Rs400/mt to Rs30,000/mt ($407.6/mt) ex-works from prior week. Following a price decline, trade volume increased since Monday and billets were booked for Gujarat market owing to better feasibility. The bi-weekly index for rebar declined by Rs450/mt at Rs33,600/mt ($456.52/mt) ex-works.
Mills operators from Jalna informed that there is a shortfall of gas cylinders – which are needed for operating the furnace – as all cylinders are being diverted for medical consumption due to the COVID-19 pandemic.
In Gujarat, the bi-weekly index for rebar fell sharply by Rs1,000/mt ($13.58/mt) at Rs33,900/mt ($460.59/mt) ex-works due to moderate demand for finished steel including rebar since last few days in the State. The bi-weekly index for billet was down by Rs400/mt at Rs30,550/mt ($415.08/mt) ex-works. Due to low demand in the local market, few mills in Kutch opted to sell billet in the export market.
In Ludhiana, the bi-weekly index for ingot decreased by Rs300/mt to Rs 32,700/mt ($444.29/mt) ex-works due to similar fall in local scrap prices.