The daily Davis Index for rebar Wednesday dropped further by Rs500/mt ($6.56/mt) to Rs32,500/mt ex-works Mumbai on reduced buying activities amid a significant slowdown in the construction sector. The index for billet decreased by Rs200/mt ($2.62/mt) and settled at Rs27,400/mt ex-works Mumbai. Billets offer were at 27,500/mt and bid were heard at Rs27,300/mt, but no deals were reported.
In Raipur, the daily Davis Index fell by Rs300/mt to Rs32,700/mt in-line with fall in ingot and billet prices and weak demand. Steel mills are worried about a further decline in prices as monsoon has reached many regions across India. Shortage of labour is also hurting production.
The daily index for billet fell by Rs100/mt ($1.31/mt) and settled at Rs27,900/mt ex-works Raipur following a fall in pellet sponge prices. Pellet sponge iron prices were at around Rs15,000 ex-works Raipur on Wednesday, down by Rs100/mt.
In Mandi Gobindgarh, the daily index for ingot declined by Rs100/mt to Rs30,600/mt ex-works.