The daily Davis Index for billet in Raipur shot up by Rs1,800/mt ($24.19/mt) and settled at Rs35,300/mt ($474.46/mt) ex-works on Tuesday from last Thursday. Some billets deal were reported at the index price. The sharp rise in billet prices is due to the sudden rise in raw material prices including iron ore, Sponge iron and iron ore pellet in a week’s time.
Pellet Sponge offers were at Rs25,500/mt ($342.74/mt) ex-works Raipur, up by Rs2,000/mt ($26.88/mt) on increase in iron ore pellet prices in the period. The index for rebar was up by Rs1,400/mt ($18.81/mt) to settle at Rs37,000/mt ($497.31/mt) ex-works mainly due to hike in input cost but rebar sales were subdued at increased prices, according to souces in steel mills in Raipur.
The National Mineral Development Corporation (NMDC) has also raised iron ore prices by Rs300-400/mt ($4-5/mt) for rest of November deliveries. This is the second price hike in the month. The new price increase will be effective from November 17. The company raised iron ore prices by Rs150/mt in early-November.
In Mumbai, the daily index for billet rose by Rs700/mt to settle at Rs35,800/mt ex-works on the back of increase in imported scrap prices by $15/mt. The daily index for rebar was up by 1,000/mt and settled at Rs 39,200/mt ex-works.
In Mandi Gobindgarh, the daily index for ingot was up by Rs950/mt at Rs35,950/mt ex-works in line with increased local scrap prices. The index for rebar was up by Rs1,000/mt at Rs40,500/mt ex-works.
In Jalna, the bi-weekly index for billet was up by Rs1,600/mt at Rs34,950/mt ex-works on increase in domestic scrap and Sponge iron prices. The index for rebar was up by Rs1,200/mt at Rs39,500/mt ex-works on Tuesday compared to Thursday, however, rebar sales remain weak post-Diwali.
In Durgapur, the bi-weekly index for billet and rebar was up by Rs1,500/mt each to Rs35,000/mt and Rs37,500/mt, ex-works, respectively.
In Gujarat, the bi-weekly index for billet was up by Rs300/mt to Rs35,000/mt ex-works with limited booking reported by the re-rolling mills, and for rebar was up Rs500/mt at Rs39,500/mt ex-works.
In Chennai, the bi-weekly index for billet and rebar was up by Rs700/mt each at Rs 35,200/mt and Rs39,200/mt, ex-works, respectively.
In Ludhiana, the bi-weekly index for ingot increased by Rs600/mt to settle at Rs 36,000/mt ex-works due to similar rise in local scrap prices.