The daily Davis Index for rebar increased Tuesday by Rs400/mt ($5.3/mt) to settle at Rs31,400/mt ($416.44/mt) ex-works Raipur driven by a rise in ingot and billet prices. Steel mills said the price hike is primarily due to increase in input cost. Demand from the construction sector and infra projects remain weak as monsoon reaches most of India.
In Raipur, the daily index for billet rose by Rs400/mt to Rs28,350/mt ($375.99/mt) ex-works. Few billet deals were heard at Rs28,300/mt. Pellet sponge iron prices were at Rs16,500/mt ex-works Raipur, up by Rs100-200/mt from the prior day.
The daily Davis Index for billet rose by Rs150/mt ($1.98/mt) on Friday and settled at Rs27,700/mt ($367.37/mt) ex-works Mumbai as sponge iron suppliers from Bellary increased prices. Few billet deals closed at Rs27,700/mt.
Limited trades left the daily Davis Index for rebar flat at Rs30,800/mt ($408.48/mt) ex-works Mumbai.
In Mandi Gobindgarh, the daily index for ingot increased by Rs100/mt ($1.32/mt) to Rs30,650/mt ($406.49/mt) ex-works on increase in local scrap and sponge iron prices. Ingot manufacturers are expecting prices to remain firm over the near term due to higher sponge prices in India.