The daily Davis Index for billet in Raipur fell by Rs150/mt ($2/mt) and settled at Rs35,250/mt ($475.06/mt) ex-works on Thursday on limited trades. Few billet deals were reported at Rs35,100-35,200/mt.
Pellet Sponge stayed flat at Rs25,300/mt ($340.97/mt) ex-works Raipur but no deal were heard at high prices. Steel mills in Raipur shared that there is acute shortage of raw materials including iron ore and pellet, indicating Sponge iron prices are unlikely to come down in near term. This has resulted in prices remaining firm for ingot, billet and rebar. The index for rebar remained unchanged at Rs37,300/mt ($502.69/mt) ex-works with limited trades.
In Mumbai, the daily index for billet rose by Rs700/mt to settle at Rs36,700/mt ex-works with some deals reported at index prices. Steel mills in Mumbai are consuming more scrap due to skyrocketing Sponge iron prices in the local market. A billet manufacturer told Davis Index that they have reduced Sponge iron consumption from 15pc to 10pc and increased the ratio of scrap consumption. The daily index for rebar was up by Rs400/mt and settled at Rs 39,900/mt ex-works on healthy rebar sales.
In Mandi Gobindgarh, the daily index for ingot was flat at Rs36,350/mt ex-works with few trades. The index for rebar was flat at Rs40,800/mt ex-works with moderate demand.
In Jalna, the bi-weekly index for billet was up by Rs900/mt at Rs37,400/mt ex-works with sharp rise in local scrap prices due to its shortage. Some billet deals were reported at index prices. The index for rebar was up by Rs1,000/mt at Rs40,000/mt ex-works on Thursday compared to Tuesday.
In Durgapur, the bi-weekly index for billet and rebar was up by Rs300/mt each to Rs35,300/mt ex-works and Rs38,000/mt ex-works, respectively.
In Gujarat, the bi-weekly index for billet was up by Rs500/mt to Rs35,500/mt ex-works, however no booking were heard. Labourers in most of the steel mills in Gujarat generally resume work a week after Diwali. Thus, trade activity and dispatches will remain affected for next few days.
In Chennai, the bi-weekly index for billet and rebar was up by Rs800/mt each at Rs 36,000/mt and Rs40,000/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.