The daily Davis index for billet in Mumbai surged by Rs500/mt ($6.71/mt) at Rs33,500/mt ($449.9/mt) ex-works on Monday with some deals reported at index price. The daily index for rebar was up by Rs200/mt at Rs36,800/mt ex-works on healthy demand. Steelmakers and traders in Mumbai are positive about steel demand gaining momentum from real estate and big infra projects.
Recently, Jindal Steel and Power Limited (JSPL) also raised rebar prices by Rs1,500/mt ($20.14/mt) as per sources. Other primary mills are likely to follow suit.
In Raipur, the daily index for billet surged by Rs700/mt at Rs32,200/mt ex-works on improvement in trade activities. The price increase is also supported by the higher Sponge iron prices.
Pellet Sponge offers were at Rs22,200/mt ex-works with no takers heard. Ingot and billet producers in Raipur are concerned about the high Sponge prices and believe that no deal is likely to take place. Meanwhile, international iron prices have also softened since early October after reaching $124/mt cfr China, and have now settled at $110-112/mt cfr China.
The daily Davis Index for rebar in Raipur was up by Rs500/mt at Rs34,700/mt ex-works in line with the rise in ingot and billet prices. Majority of the traders have started restocking finished steel including rebar on the anticipation of surge in demand post-Diwali.
In Mandi Gobindgarh, the daily Davis Index for ingot was up by Rs600/mt at Rs34,700/mt with increase in scrap prices. The index for rebar was up by Rs500/mt at Rs39,100/mt ex-works on improve sales.