The Davis Index for rebar in Raipur rose by Rs1,000/mt ($13.22/mt) to Rs35,700/mt (472.22/mt) ex-works from Friday driven by a rise in ingot and billet prices and healthy demand from affordable housing scheme projects initiated by the government. The price increase was also fuelled by a shortage of finished steel since most mills are running at 40-50pc capacity.
Trades, however, dwindled after the price rise. Market participants are expecting prices to decline this week.
The index for billet increased by Rs1,500/mt ($19.84/mt) and settled at Rs29,400/mt($388.88/mt) ex-works Raipur from last Friday in line with an increase in sponge iron and ferrous scrap prices. Pellet sponge iron was priced at Rs16,400-16,500/mt ex-works Raipur, up by Rs1,100/mt.
In Mandi Gobindgarh, the daily index for ingot increased by Rs500/mt ($6.61/mt) to Rs31,250/mt ($413.03/mt) ex-works due to a similar increase in ferrous scrap prices.
The Davis Index for rebar remained unchanged from Friday at Rs34,300/mt (453.7/mt) ex-works Mumbai with thin trades. Demand continued to lag and will take a longer time to revive compared to other parts of the country. This, mainly since new cases of COVID-19 in the city continued to rise. Mills, therefore, are unable to increase rebar offers.
The daily index for billet increased by Rs800/mt ($10.58/mt) to Rs29,500/mt ($390.22/mt) ex-works Mumbai due to an increase in imported scrap prices by about $5/mt.