The daily Davis Index for billet in Mumbai on Friday went up by Rs300/mt ($4.10/mt) and settled at Rs30,800/mt ($421.34/mt) ex-works on increase in imported scrap prices along with improved demand. The daily Davis Index for rebar in Mumbai remained flat for the fifth consecutive day at Rs33,900/mt ($463.62/mt) ex-works with limited trades.
Steel mills officials in Mumbai said that demand from the construction segment is still missing at ground. Recently, the Maharashtra State government announced reduction of stamp duty of 2pc from September to December to revive the real estate industry.
Mills operators in Mumbai told Davis Index that this is a welcome move but its impact will be small as the problem of liquidity continues to persist and trade activities in finished rebar market are still at below 50pc.
In Raipur, the daily index for billet increased by Rs450/mt ($6.15/mt) to settle at Rs30,000/mt ($410.39/mt) ex-works following improvement in trade activities along with rise in sponge iron prices. Pellet sponge offers were at Rs20,200/mt ex-works, up by Rs300/mt from the prior day but no deal were reported at these prices.
The daily index for rebar increased marginally by Rs150/mt to Rs32,650/mt ($446.64/mt) ex-works. Mills in Central India are concerned about spreads due to sharp increase in inputs costs including sponge iron, pig iron and billet. However, rebar prices did not increase at the same pace.
In Mandi Gobindgarh, the daily index for ingot was up by Rs400/mt to settle at Rs33,300/mt ($455.54/mt) ex-works in line with increase in local scrap prices. The daily index for rebar also up by Rs450/mt at Rs38,450/mt ($524.55mt) ex-works on better demand.
($1=Rs73.12)