The daily Davis Index for rebar remained unchanged at Rs33,400/mt ($443.08/mt) ex-works Mumbai as mills struggled with high inventory amid a halt of trading due to the COVID-19 lockdown. The 21-day lockdown imposed by the government of India will continue till April 14. The daily index for billet settled at Rs28,700/mt ($380.73/mt) ex-works Mumbai.
The state government of Maharashtra has announced a power tariff cut of 8pc for industrial users. Although it is a positive gesture by the government, secondary mills based in the state said that the cost cuts will not be significant enough. Finished good inventory at the mills are significantly high and they need to reduce stocks as soon as the lockdown ends to keep operations running.
The daily Davis Index for rebar in Raipur remains unchanged at Rs31,200/mt ($413.9/mt) ex-works in the absence of trade. The daily index for billet also remains unchanged at Rs26,500/mt ($351.50/mt) ex-works Raipur.
In Mandi Gobindgarh, the daily index for ingot remain unchanged at Rs29,800/mt ($395.33/mt) ex-works. Government authorities and industries in the state of Punjab is mulling ways to restart manufacturing to stop reverse migration of casual labours and provide them with food and shelter in industrial premises. If these efforts are successful, the industry will not face labour scarcity when the lockdown ends.