Finished and semi-finished steel prices declined on Tuesday. Since late last week, mills were bullish and had raised prices by at least Rs1,000/mt in Mumbai citing a decline in production due to oxygen shortage. The price rise, however, could not be absorbed by the market in a weak demand scenario.
The daily Davis Index for billet in Raipur was at Rs41,500/mt ($553.79/mt) ex-works, down by Rs700/mt ($9.34/mt), while the index for rebar was unchanged at Rs47,000/mt ex-works. With the lockdown extending in the state till April 26, demand is likely to remain under pressure. Once the restrictions are eased, mills expect demand to surge and boost prices.
Offers for pellet sponge were at Rs29,500-29,800/mt ex-works Raipur; down by Rs700-1,000/mt from Monday.
In Mumbai, the daily index for rebar fell by Rs1,000/mt to Rs50,300/mt ex-works, while that for billet was at Rs43,000/mt ex-works, down by Rs1,500/mt. Mills were forced to reduce offer prices with sales taking a hit at the raised price level. End-users are already wary of stringent social distancing measures weighing down on the country’s economy.
In Mandi Gobindgarh, the index for ingot fell by Rs900/mt to Rs42,800/mt ex-works, also on lack of demand.
In other markets, the bi-weekly index for billet rose by Rs500/mt to Rs44,000/mt ex-works Jalna, while the index for rebar was unchanged at Rs51,000/mt ex-works. The index for ingot declined by Rs1,300/mt to Rs42,700/mt ex-works Ludhiana.
($1=Rs74.92)