Indian semi-finished steel prices rose for a third successive day amid production cuts because of a shortage of oxygen cylinders. Higher scrap prices on tight supply also lifted long steel prices in key local markets.
In Raipur, the daily Davis Index for billets rose by Rs800/mt ($10.75/mt) to Rs42,600/mt ex-works; while the index for rebar increased by Rs1,400/mt to Rs47,700/mt. Demand, however, remains under pressure with economic activities, including construction and manufacturing coming to a standstill amid the ongoing lockdown in Chhattisgarh.
The daily index for billet settled at Rs44,700/mt ex-works Mumbai, up by Rs2,200/mt and the index for rebar was at Rs50,000/mt ex-works, up by Rs1,200/mt. The Maharashtra state government has asked businesses to divert their oxygen supplies for medical use. In Jalna, a major steelmaking hub of Maharashtra, mills have stalled production. Unavailability of labourers due to a mass exodus of migrant workers returning to their hometown has also hit production.
In Mandi Gobindgarh, the index for ingot rose by Rs300/mt to Rs44,300/mt ex-works on higher scrap prices.