The daily Davis Index for rebar in Mumbai remained unchanged at Rs34,300/mt ($453.40/mt) ex-works with limited trades. Secondary mills across Mumbai are still operating at around 50pc capacity utilization in line with subdued demand. Despite reduced capacity, finished goods inventories at mills are rising as construction companies have restricted their material purchases to minimal quantities.
Construction activities have slowed due to the shortage of labour. Steel mills in Maharashtra are challenged by both weak demand due to the spread of COVID-19 and labour shortages as skilled workers are hard to be replaced.
The daily Davis Index for billet was flat at Rs29,350/mt ($387.97/mt) ex-works Mumbai due to higher imported scrap prices.
In Raipur, the daily Davis Index for rebar settled flat at Rs35,000/mt ex-works Raipur as ingot and billet prices remained unchanged. The daily index for billet rose marginally by Rs50/mt and settled at Rs29,600/mt ex-works Raipur. Pellet sponge iron prices remained higher at around Rs16,100-16200mt ex-works Raipur on Monday.
In Mandi Gobindgarh, the daily index for ingot rose by Rs150/mt to Rs31,900/mt ex-works on a similar hike in ferrous scrap prices.
($1= Rs75.65)