Ingot and billet prices ended their two-week-long rally. The daily Davis Index for billet in Mumbai dropped by Rs900/mt ($12/mt) to Rs39,400/mt ($544/mt) ex-works from Friday. In the past two weeks, billet prices had surged by around Rs4,000/mt ($539/mt), while rebar prices had increased by Rs2,000/mt ($28/mt). Most buyers were unwilling for purchases at these elevated price levels. Steelmakers were thus forced to reduce asking prices.
Re-rolling mills with sufficient inventories in hand continued to stay away from the market. They are likely to resume purchases after prices drop further. Bullish imported scrap prices, however, could limit the extent of price decline. The index for rebar flat at Rs44,700/mt ($617/mt) ex-works Mumbai with limited trades.
In Raipur, the daily index for billet decreased by Rs500/mt at Rs37,000/mt ex-works as demand came under pressure at the present price levels. Pellet Sponge offers were at Rs25,500/mt ex-works with limited takers. The index for rebar settled unchanged at Rs41,500/mt ex-works Raipur.
In Mandi Gobindgarh, the index for ingot dipped by Rs200/mt to settle at Rs39,700/mt ex-works.
($1=Rs72.47)