Ingot, billet and rebar prices maintained its uptrend on Tuesday. Induction furnaces in Central India are facing margin squeeze due to high sponge iron prices.
The daily Davis Index for billet in Raipur, Tuesday, rose Rs500/mt ($7/mt) to settle at Rs42,000/mt ($576/mt) as suppliers kept offers firm due to high sponge iron prices. The price rise was also supported by the uptrend in Mandi Gobindgarh.
Offers for pellet sponge were further up by Rs500/mt at Rs30,000/mt ($406/mt) ex-works. The daily index for rebar up by Rs500/mt at Rs45,500/mt ex-works Raipur with decent demand at increased prices.
Market participants are cautious about the direction of domestic long steel prices looking at volatility in Chinese steel futures prices.
Most of the construction sites in Maharashtra are still operating at around 70-75pc due to shortage of workforce and will be fully back by August-September. The impending monsoon season and the local lockdown till June 15 will keep demand moderate in West India.
In Mumbai, the index for billet and rebar remained flat at Rs42,000/mt and Rs48,200/mt ex-works, respectively.
In Mandi Gobindgarh, the daily index for ingot was up Rs500/mt to Rs45,000/mt ex-works in line with the rise in local scrap prices.
($1= Rs72.9)