Ingot and billet prices continued to drop on Tuesday as secondary mills were distressed to sell.
The daily Davis Index for billet in Raipur fell by Rs700/mt ($9/mt) to Rs40,700/mt ($549/mt) ex-works on Tuesday on weak demand from rolling mills. Billet sellers reduced offers to stimulate demand, however, there were insufficient buyers even at those price levels. The price decline was also on the back of a drop in Mandi Gobindgarh ingot market.
Secondary mills continued to face margin squeeze amid declined finished steel sales.The rebar market is unlikely to revive in the near term and most of the mills have plans to curtail production from July 1.
Pellet sponge offers dropped by Rs500/mt ($7/mt) to Rs29,300/mt ($395/mt) ex-works Raipur. Offers were heard at Rs29,500/mt and bids at Rs29,000/mt. The daily index for rebar was down by Rs500/mt at Rs44,000/mt ($593/mt) ex-works Raipur.
In Mumbai, the daily index for billet declined by Rs200/mt to Rs41,800/mt and the index for rebar remained flat at Rs45,800/mt ex-works.
In Mandi Gobindgarh, the daily index for ingot was down by Rs1,000/mt to Rs42,300/mt ex-works amid a fall in local scrap prices. Mills also informed that rebar sales have fallen by almost 80-90pc in the last couple of days as compared to usual levels.
In Chennai, the bi-weekly Davis Index for billet decreased by Rs1,000/mt from last Thursday to settle at 43,000/mt ex-works, while the index for rebar fell by Rs1,000/mt to Rs48,500/mt ex-works.