Steel billet continued their uptrend in Raipur due to a scarcity of material. Pig iron prices also increased in the domestic market, contributing to the rise.
The daily Davis Index for billet in Raipur was up by Rs200/mt ($3/mt) to Rs41,300/mt ($553/mt) ex-works. Induction furnaces have cut production by 30-50pc amid weak domestic fundamentals, which has led to the shortage.
Market participants believed domestic billet and rebar prices have bottomed out and are unlikely to slip further. Pig iron prices increased on July 16 in an auction conducted by the Sail Rourkela unit. Bids in the auction were at Rs37,000-37,200/mt ($496-499/mt) ex-works Rourkela.
Pellet sponge prices remained unchanged at Rs29,000/mt ($390/mt) ex-works Raipur with limited takers. The daily index for rebar was up by Rs200/mt ($4/mt) to Rs44,000/mt ($588/mt) ex-works Raipur.
In Mumbai, the daily index for billet was flat at Rs42,500/mt ex-works. The index for rebar was down by Rs400/mt to Rs47,400/mt ex-works Mumbai on sluggish demand.
In Mandi Gobindgarh, the daily index for ingot fell by Rs100/mt to Rs42,600/mt ex-works.