Demand for finished steel is slowing down, which is bring down prices in most Indian markets. The daily Davis Index for billet in Raipur slipped by Rs400/mt ($5.47/mt) at Rs39,000/mt ($533.66/mt) ex-works on Friday following drop in rebar prices. Since last two days, buyers have stayed away due to liquidity crunch coupled with a one-day festive break, which is causing panic among sellers as they are unable to sell in spite of construction activities picking up.
Pellet Sponge prices are at Rs25,500/mt ($348.93/mt) ex-works Raipur — with very few takers. IF or EAFs are hoping for more correction in Sponge prices and are targeting material at lower prices for booking. The index for rebar dropped by Rs1,300/mt ($17.78/mt) at Rs43,000/mt ($588.39/mt) ex-works Raipur due to sluggish demand from the retail market.
In Mumbai, the daily Index for billet dropped by Rs400/mt, in line with fall in rebar prices and settled at Rs40,300/mt ex-works. The index for rebar fell by Rs400/mt at Rs46,900/mt amid subdued trading activity.
In Mandi Gobindgarh, the daily index for ingot fell by Rs1,000/mt to Rs38,500/mt, in line with decrease in local scrap prices. Steel mills expect finished steel demand in the construction sector to pick-up by middle of next week.