Billet and ingot prices in India rose for a second successive day on Friday. Secondary mills raised asking prices citing a shortage of semi-finished steel on production cuts. Unavailability of sufficient oxygen and workforce has forced mills to curtail operations.
The daily Davis Index for billet in Raipur rose by Rs100/mt ($1.33/mt) to Rs41,800/mt ($557.96/mt) ex-works, while the index for rebar rose by Rs500/mt to Rs47,000/mt ex-works. On Thursday, despite a rise in prices of steel semis, rebar prices were unchanged. But on Friday, mills decided to raise offers and pass on the increase in input cost to end-consumers.
In Mumbai, the daily index for rebar settled unchanged for the second day at Rs49,300/mt ex-works, while that for billet was at Rs44,500/mt ex-works, up by Rs500/mt. Demand for long finished steel remains under pressure with the Maharashtra government announcing a complete lockdown and imposing additional curbs on businesses. Market participants expect the state economy to take a severe hit.
In Mandi Gobindgarh, the daily index for ingot rose by Rs500/mt to Rs44,400/mt ex-works amid shortage resulting from production cuts and a rise in input costs.