The daily Davis Index for billet in Raipur continued its upward trend by Rs200/mt ($2.71/mt) at Rs30,800/mt ($419.04/mt) ex-works on Thursday due to surge in Sponge iron prices. Pellet Sponge offers were at Rs20,600/mt ($280.27/mt) ex-works but found no takers, up by Rs500-600/mt since the starting of the week. A source at an integrated steel mill in Raipur shared that iron pellet has also increased to around Rs8,700/mt ex-works Raipur, from Rs8,300/mt.
Market participants are surprised with the sudden rise in Sponge iron prices and electric arc furnace (EAF) and induction furnace (IF) mills are facing extreme cost pressure in Central India as rebar prices did not rise in sync. The daily Index for rebar in Raipur rose by Rs100/mt at Rs33,500/mt ex-works, however, demand is still lagging at increased prices.
In Mumbai, the daily Index for billet remained firm at Rs32,200/mt ex-works. The index for rebar was flat at Rs35,600mt ex-works with limited trade activities. Few steels mill operators in Mumbai shared that imported scrap booked at lower prices in the previous weeks are expected to reach West India port in a few days.
In Mandi Gobindgarh, the daily Davis Index for ingot was up by Rs150/mt at Rs33,500/mt on rise in scrap prices while the index for rebar was flat at Rs38,000/mt ex-works.
In Durgapur, the bi-weekly index for rebar dropped by Rs200/mt ($2.71/mt) to Rs32,000mt ($434.8/mt) ex-works from 32,200/mt ($437.60/mt) with a few deals reported at the index price. Manufacturers anticipate that domestic demand could shrink further. The spike in raw material prices is hurting the margins due to which the manufacturers are planning to raise the rebar prices in the coming week. The index for billet rose by Rs500/mt ($6.79/mt) to Rs30,800/mt ($418.5/mt) ex-works Durgapur.
In Chennai, the bi-weekly Davis Index for rebar remained unchanged at Rs 35,125/mt ($477.34/mt) ex-works on Thursday amid thin trades. The index for billet dropped by Rs150/mt ($2.03/mt) to Rs31,200/mt ($424.007/mt) from Rs31,350/mt ($426.065/mt) on Tuesday.
In Jalna, the bi-weekly index for billet was up by Rs200/mt to Rs31,700/mt ex-works in line with rise in rebar prices. The index for rebar was up by Rs100/mt at Rs35,600/mt ex-works on moderate demand.
In Gujarat, the bi-weekly index for billet was up by Rs300/mt to Rs32,700/mt ex-works due to rise in local scrap prices. The bi-weekly index for rebar was also up Rs400/mt at Rs35,900/mt ex-works. A rebar mill operator in Ahmedabad informed that Gujarat’s market continues to remain tight compared to other neighbouring markets as demand for finished steel including rebar is good.
In Ludhiana, the bi-weekly index for ingot was up by Rs100/mt at Rs 33,800/mt ex-works.