The daily Davis Index for billet in Raipur surged by Rs1,000/mt (13.4/mt) and settled at Rs33,500/mt ($449.18/mt) ex-works on Thursday as pre-Diwali restocking was on amid strong expectation of bullish market going forward. Some billet deals were reported at index price. The sharp rise in billet prices is also being attributed to the sudden uptrend in Sponge iron and iron ore Pellet prices in the week.
Pellet Sponge offers were at Rs23,300/mt ex-works Raipur, up by Rs500-600/mt on increase in iron ore Pellet prices. Last Pellet Sponge deal was heard at Rs22,800/mt. The index for rebar was up by Rs900/mt to settle at Rs35,600/mt ex-works amid healthy buying by the traders.
In Mumbai, the daily index for billet rose by Rs800/mt to settle at Rs35,100/mt ex-works on hike in imported scrap prices by $5-10/mt, along with good demand. Steel mills in Mumbai raised rebar prices by Rs500-600/mt looking at sustained demand from the end-user industries such as construction. The daily index for rebar was up by 500/mt and settled at Rs 38,200/mt ex-works.
In Mandi Gobindgarh, the daily index for ingot was up by Rs500/mt at Rs35,000/mt ex-works in line with increased local scrap prices. The index for rebar was up by Rs400/mt at Rs39,400/mt ex-works.
In Jalna, the bi-weekly index for billet was up by Rs950/mt at Rs34,950/mt ex-works with healthy trades. Some deals were reported at Rs35,000/mt. The price rise was also supported by shortage of billet as demand outpaced supply. The index for rebar was up by Rs800/mt at Rs38,300/mt ex-works on Thursday compared to Tuesday amid healthy rebar booking.
In Durgapur, the bi-weekly index for billet and rebar was up by Rs1,000/mt each to Rs33,400/mt and Rs35,000/mt, ex-works, respectively.
In Gujarat, the bi-weekly index for billet was up by Rs500/mt to Rs33,400/mt ex-works with busy trading reported by the re-rolling mills, and for rebar was up Rs500/mt at Rs39,000/mt ex-works.
In Chennai, the bi-weekly index for billet was flat at Rs 34,500/mt ex-works, while rebar was up by Rs500/mt at Rs38,500/mt ex-works.
In Ludhiana, the bi-weekly index for ingot increased by Rs900/mt to settle at Rs 35,400/mt ex-works due to increase in local scrap prices. Positive market sentiments supported the price rise.
($1=Rs74.58)