The daily Davis Index for rebar in Mumbai remained flat for the second day of the week at Rs33,900/mt ($465.02/mt) ex-works Mumbai. Trade activities remained almost nil Tuesday amid religious celebration in many parts of India. The daily index for billet rose by Rs250/mt and settled at Rs30,800/mt ($422.49/mt) ex-works. Billets offers were at Rs31,000/mt, but there were no takers at these levels.
In Raipur, the daily index for billet remained flat Tuesday and settled at Rs30,000/mt ($411.52/mt) ex-works with no major deal heard. Pellet sponge offers were at Rs20,200/mt ($277.09/mt) ex-works, no trades were confirmed. Last deal was reported at Rs20,000/mt for a large quantity.
The daily index for rebar increased by Rs250/mt to Rs32,800/mt ($449.93/mt) ex-works Raipur. The price revision for finished steel products including rebar is primarily due to increasing input cost, mostly sponge iron. Demand from construction sectors, especially the housing segment, is still lagging.
In Mandi Gobindgarh, the daily index for ingot fell by Rs150/mt to settle at Rs33,200/mt ($455.41/mt) ex-works in-line with fall in local scrap prices. The daily index for rebar rose marginally by Rs50/mt to Rs37,950/mt ($520.57/mt) ex-works.
In Durgapur, the bi-weekly index for rebar rose by Rs700/mt ($9.59/mt) to Rs33,400/mt ($457.8/mt) ex-works on Tuesday from 32,700/mt ($448.2/mt) in the week prior amid limited trades and sluggish demand for steel. The index for billet, however, rose by Rs1,300/mt ($17.81/mt) to Rs31,000 ($424.8/mt) ex-works Durgapur.
In Chennai, the bi-weekly, Davis Index for rebar rose marginally by Rs83/mt (1.13/mt) to Rs 35,083 ($480.8/mt) from Rs35,000/mt ($479.7/mt). Thin trades were reported. Manufacturers cited that sponge iron is being substituted for scrap amid an increase in ferrous scrap prices, globally. They also expect the market to remain slow in the coming weeks. The index for billet, however rose by Rs500 ($6.8/mt) to Rs31,500/mt ($431.7/mt).
In Jalna, the bi-weekly index for billet increased by Rs500/mt to Rs30,900/mt ($423.86/mt) ex-works from last Friday with a rise in local scrap prices and improved trade activities. The bi-weekly index for rebar increased by Rs200/mt at Rs34,200/mt ($469.13/mt) ex-works. Few mills in Jalna stated that trades were better on Monday, but cooled-off on Tuesday. Market participants are awaiting a prices hike from primary mills which are expected to give direction to the market.
In Gujarat, the bi-weekly index for rebar was up by Rs750/mt to Rs34,900/mt ($478.73/mt) ex-works on account of increase in ingot and billet prices, but demand is limited. The bi-weekly index for billet was also up by Rs200/mt Rs31,550/mt (432.78/mt) ex-works. Steel rolling mills in the state are worried about finished steel demand and the rise of raw material prices last week which has squeezed their profit margins.
In Ludhiana, the bi-weekly index for ingot increased by Rs450/mt to Rs 33,450/mt (458.84/mt) ex-works with a similar rise in local scrap prices.