Prices for finished and semi-finished steel in India recovered on Thursday after National Mineral Development Corporation (NMDC) hiked iron ore prices by $14.5/mt.
The daily Davis Index for billet in Raipur surged by Rs1,400/mt ($18.63/mt) to Rs41,800/mt ($/mt) ex-works on Thursday. Input costs increased as offers for pellet Sponge iron increased by Rs1,000/mt at the minimum to Rs30,500/mt ex-works Raipur. Declined production amid oxygen cylinder shortage also gave prices a lift. But end-user demand remains under pressure because of the ongoing lockdown in the state of Chhattisgarh.
The index for rebar was up by Rs1,500/mt to Rs46,300/mt ex-works Raipur following a rise in semi-finished steel prices.
In Mumbai, the index for billet rose by Rs800/mt to Rs42,500/mt ex-works. The index for rebar was up by Rs1,000/mt to Rs47,800/mt ex-works. The government of Maharashtra has tightened restrictions until April 30. According to new rules, construction activities can continue only if builders can arrange to house laborers at the development site. Prices rose on improved sentiment.
In Mandi Gobindgarh, the index for ingot surged by Rs1,100/mt to Rs44,000/mt ex-works despite mills limiting purchases amid uncertainty surrounding lockdown.
With a dip in economic activities, payment cycles have been delayed with most re-rolling mills receiving payments three-four months later than scheduled.
($1=Rs75.15)