The daily Index for billet in Mumbai surged by Rs500/mt ($6.79/mt) at Rs32,700/mt ($443.99/mt) ex-works on Friday following rise in finished steel prices including rebar. The prices rise is also supported by the rise in imported scrap prices. Some billet deals reported at Index price and few shredded deals were also reported at $315-317/mt CFR Nhava Sheva, Mumbai.
The index for rebar was up by Rs400/mt at Rs36,000/mt ex-works Mumbai amid healthy rebar sales for the second consecutive day, according to steel mill operators.
A well-known trader in Mumbai shared that rebar demand has started picking-up in real estate projects largely from affordable and mid-income housing but it is still lagging from premium housing segment.
In Raipur, the daily Davis Index for billet moved up by Rs400/mt at Rs31,300/mt ex-works on Friday on higher Sponge iron prices along with healthy booking from the re-rolling mills. Some billet deals were reported at Rs31,300/mt. Pellet Sponge offers were at Rs20,700/mt ex-works, up by Rs100-200/mt and few deals were heard at Rs20,500/mt.
The daily Index for rebar rose by Rs300/mt at Rs33,800/mt ex-works Raipur with good buying from the traders on Thursday which slowed down on Friday. Most of the steel mills are optimistic that rise in price is likely to stop soon and demand will shrink at such increased prices thereafter.
In Mandi Gobindgarh, the daily Davis Index for ingot was up by Rs250/mt at Rs33,750/mt on rise in scrap prices. The index for rebar was up Rs400/mt at Rs38,400/mt ex-works on better demand.