Ingot and billet prices increased in major Indian secondary markets on Tuesday as market participants became active just before the festival of Holi, wanting to finish off as much work as possible before the fiscal year ends on March 31. The daily Davis Index for billet in Raipur rose sharply by Rs1,500/mt ($20/mt) to Rs40,500/mt ($551/mt) ex-works on Tuesday from Friday due to healthy demand from re-rolling mills while supplies are tight. Record-high Sponge iron prices also supported the price rise.
Most of the steel mills informed that the sudden price rise in the last few days is due to indication from the primary steel mills of a possible increase in long and flat products prices in early-April. Though price hike of flat products is expected to be more compared to long products.
Some steel mills are skeptical whether increased domestic prices will sustain in the near term, but actual position will be clear only by early next week.
Pellet Sponge offers increased to Rs28,000/mt ($381/mt) ex-works Raipur with hardly any takers. The daily index for rebar also increased by Rs1,500/mt to Rs44,200/mt ($601/mt) ex-works Raipur on Tuesday from Friday.
In Mumbai, the index for billet surged by Rs1,500/mt to Rs42,500/mt following a rise in rebar prices. The index for rebar increased by Rs1,200/mt to Rs47,400/mt ex-works on heathy demand.
In Mandi Gobindgarh, the index for ingot increased by Rs1,200/mt to Rs41,700/mt ex-works in line with the increase in local scrap prices.
In Chennai, the bi-weekly index for billet rose by Rs2,500/mt to Rs43,000/mt on good demand. A few steel mill operators in Chennai shared that rebar demand is quite good despite assembly elections in Tamil Nadu scheduled for April 6. Government projects are progressing well, too. The index for rebar was up by Rs1,500/mt to Rs47,000/mt ex-works.