The daily Davis Index for billet in Raipur surged by Rs800/mt (10.6/mt) to settle at Rs31,850/mt ($425.8/mt) ex-works following an increase in finished steel prices including rebar. Secondary mills in Central India increased billet prices more than prices of rebar on Monday due to high cost but low availability of sponge. Pellet sponge offers remained flat at Rs21,000/mt ($280.74/mt) ex -works Raipur. The daily index for rebar up by Rs467/mt to Rs34,767/mt ($464.7/mt) ex-works Raipur.
As per the market participants, some primary steel producers are planning to raise prices in the upcoming days. Earlier in the month, almost all producers had increased prices in long and flat products by Rs1,000-2,000/mt for August deliveries. They are seeing improving demand in the domestic market, mostly from the rural regions.
In Mumbai, the daily Davis Index for billet remained flat at Rs31,800/mt ($425.13/mt) ex-works with limited trade. The daily Davis Index for rebar in Mumbai was up by Rs100/mt ($1.33/mt) and settled at Rs34,800/mt ($464.74/mt) ex-works. Despite rebar prices being firm, trade activity was moderate and very few booking were heard at index price.
In Mandi Gobindgarh, the daily index for ingot increased by Rs350/mt and settled at Rs33,850/mt ($425.54/mt ex-works in-line with rise in local scrap prices. The daily index for rebar also increased by Rs100/mt and settled at Rs38,600/mt ($516.04/mt) ex-works. Market participants are eagerly waiting for the price direction in the domestic market as input costs rise while demand of finished steel remains subdued.