The daily Davis Index for billet in Raipur rose by Rs200/mt ($2.7/mt) at Rs31,750/mt ($429.63/mt) ex-works on Wednesday due to spike in Sponge iron prices, however, no deals were confirmed. Pellet Sponge offers were at Rs22,000/mt ($297.69/mt) ex-works with no takers heard at increased prices. Last pellet Sponge deal was heard at Rs21,600/mt.
Most of rolling mills in Raipur claim that iron ore crisis persists and they are facing extreme cost pressure in the month as sponge iron, ingot and billet prices spiked but rebar prices did not rise at the same pace. Moreover, demand is sluggish in finished rebar market and the situation is unlikely to improve in the near term. By-election in Madhya Pradesh (MP) will be held on November 3 and till then construction activities will take a break. Raipur and Jalna are the top suppliers of finished steel including rebar to MP.
The daily Index for rebar rose by Rs200/mt at Rs34,300/mt ex-works Raipur, however, demand is moderate at increased prices.
In Mumbai, the daily index for rebar was up by Rs300/mt at Rs36,600/mt ex-works on rise in billet prices. The daily index for billet in Mumbai was up Rs600/mt at Rs33,200/mt ex-works with limited deals.
In Mandi Gobindgarh, the daily Davis Index for ingot was up by Rs200/mt at Rs34,100/mt on rise in scrap prices. The index for rebar was up by Rs100/mt at Rs38,600/mt ex-works.