Ingot, billet prices declined in all major Indian secondary markets as buyers continued to remain inactive. Piling finished steel inventories has pressured prices too.
The daily Davis Index for billet in Raipur was at Rs41,600/mt ($561/mt) ex-works, down by Rs100/mt. Billet sellers reduced offers to attract bids amid a lull in the markets. On Wednesday, few deals were reported at Rs41,900/mt ($565/mt) ex-works late in the day.
Secondary mills in Central India rued about high sponge prices coupled with weak demand from downstream players due to monsoon season hampering their margins. Few mills in Raipur also said the if the situation continues, they could slash production by 50pc or completely shut units for a few days.
Offers for pellet sponge were heard at Rs30,500/mt ($411/mt) ex-works, as sellers were not inclined to reduce offers due to firm iron ore prices. The daily index for rebar remained unchanged at Rs45,000/mt ($607/mt) ex-works Raipur.
In Mumbai, the daily index for billet fell by Rs500/mt to Rs42,500/mt ex-works, while the index for rebar fell by Rs200/mt to Rs45,800/mt ex-works on sluggish sales.
In Mandi Gobindgarh, the daily index for ingot was down by Rs200/mt to Rs44,200/mt ex-works in line with the fall in local scrap prices.
In Chennai, the bi-weekly Davis Index for billet decreased by Rs500/mt to settle at 44,500/mt on Thursday from Tuesday as supply eased. The index for rebar fell by Rs500/mt to Rs49,500/mt. Some mills are operating at 80-90pc, however, demand continues to be tepid which has pressured prices in the last couple of weeks.