The daily Davis Index for rebar in Raipur remained unchanged on Thursday and settled at Rs31,400/mt ($417.16/mt) ex-works Raipur. Steel mills are facing extreme margin compression amid weak demand for finished steel. A few trades were heard at Rs30,800-31,000/mt, lower than the manufacturer’s offer in a move to liquidate finished inventory amid uncertainty.
The daily index for billet down by Rs100/mt to Rs27,850/mt ex-works Raipur. Pellet sponge iron prices were at Rs16,300-400/mt ex-works Raipur, unchanged from the prior day.
In Mumbai, the daily Davis Index for rebar settled flat at Rs30,800/mt ($409.19/mt) ex-works amid limited trades. The daily Davis Index for billet fell by Rs150/mt ($1.99/mt) and settled at Rs27,900/mt ($371.32/mt) ex-works Mumbai. Few billet deals were reported at Rs27,900/mt.
In Mandi Gobindgarh, the daily index for ingot decreased by Rs50/mt to Rs30,450/mt ex-works.
Around 11 national highway projects worth over Rs20,000 crore ($265.8mn) are in the pipeline, said India’s Transport Minister, Nitin Gadkari, according to media reports. These projects are likely to boost demand for rebar in the short term.