Rebar inventories at most secondary steel mills in Mumbai and Jalna are rising due to slow sales amid a slump in construction activities during the monsoon season.
The daily Davis Index for rebar, Monday, fell by Rs200/mt ($3/mt) to Rs47,500/mt ($650/mt) ex-works Mumbai from Friday, pressured by rising finished steel inventories at most secondary mills.
Last week, rebar prices decreased by Rs1,200/mt ($16/mt) as supply exceeded demand. The daily index for billet remained unchanged at Rs43,000/mt ($588/mt) with no takers.
Secondary mills in Mumbai and Jalna indicated they are experiencing price pressure, which they expect is likely to continue in the near term. The market is unlikely to improve before the end of September. The region will also enter a festive mood for two weeks from Sept 10 onward amid the Ganesh Chaturthi celebrations.
In Raipur, the daily index for billet was down by Rs300/mt at Rs41,300/mt as buyers targeted lower prices. Pellet sponge prices fell by Rs300/mt to Rs29,500/mt ex-works Raipur.
In Mandi Gobindgarh, the daily index for ingot was down by Rs100/mt to Rs44,500/mt ex-works in line with a dip in local scrap prices.