Ingot and billet prices increased on Friday in major domestic market with Mumbai experiencing the most surge in prices.
The daily Davis Index for billet in Mumbai increased by Rs600/mt ($8.23/mt) to Rs35,700/mt ($489.71/mt) ex-works on Friday amid announcement of removal of power subsidy. Maharashtra’s electricity department has removed subsidy of Rs1.3 per unit for the months of February and March for manufacturing industries achieving annual cap of Rs12bn in January. This will increase cost of production of major steel units in Mumbai and Jalna.
Secondary mills in Mumbai kept rebar offers unchanged for the fifth day as mills found it difficult to sell rebar throughout the week. The index settled at Rs42,500/mt ($582.99/mt) ex-works Mumbai.
In Raipur, the daily index for billet increased by Rs200/mt to Rs33,000/mt ex-works with good demand from outstation market. Few billet deals were reported around Rs32,800/mt.
Traders could start restocking finished steel, including rebar, amid belief that prices have bottomed out and the market is expected to climb in the coming weeks. Pellet Sponge offers stayed firm at Rs22,500/mt ex-works while the index for rebar settled at Rs38,000/mt but with limited takers.
In Mandi Gobindgarh, the daily index for ingot was up by Rs400/mt to Rs35,400/mt amid a rise in domestic scrap prices.
($1=Rs72.91)