Ingot and billet prices maintained uptrend due to elevated price of raw materials. Limited sponge production and higher prices kept ingot and billet prices inflated.
The daily Davis Index for billet in Raipur increased by Rs200/mt ($3/mt) at Rs43,400/mt ($585/mt) ex-works on Thursday. Most billet suppliers in Central India were unwilling to reduce prices due to low conversion from sponge iron to billet.
Sponge iron production declined by 10-15pc owing to the ongoing monsoons which led to a lower availability of material, informed sponge units in Raipur. A surge in global coal prices is an additional burden on sponge producers which is also leading to a dent in margins.
Pellet sponge prices were up by Rs400/mt ($6/mt) at Rs31,500/mt ($425/mt) ex-works Raipur with a few trades. The daily index for rebar was up by Rs500/mt Rs45,500/mt ($613/mt) ex-works Raipur.
In Mumbai, the daily index for billet remained flat at Rs45,000/mt due to a lack of trades. The index for rebar was also unchanged at Rs49,700/mt ex-works.
In Jalna, the bi-weekly index for billet rose by Rs400/mt to Rs44,400/mt ex-works Jalna from Tuesday, while rebar was flat at Rs48,700/mt ex-works.
In Mandi Gobindgarh, the daily index for ingot was up by Rs400/mt at Rs45,700/mt ex-works in-line with a surge in local scrap prices.
In Gujarat, the bi-weekly index for billet up by Rs500/mt at Rs45,000/mt ex-works Kutch from Tuesday.