The daily Davis Index for billet in Raipur on Tuesday dropped further by Rs400/mt ($5.4/mt) and settled at Rs34,400/mt ($464.92/mt) ex-works. Mills were distressed to sell and reduced offer prices. Some billet deals reported at index prices.
Meanwhile few steel mills in Raipur feel due to ongoing supply crunch of iron ore in Central India, there is less scope for prices to drop for ingot and billet. Pellet Sponge offers were at Rs24,500/mt ($331.12/mt) ex-works Raipur, with no takers. The index for rebar remained unchanged at Rs37,000/mt ($500.06/mt) ex-works with limited trades.
In Mumbai, the daily index for billet fell by Rs400/mt to settle at Rs36,100/mt ex-works on dip in demand. Billet offers at Rs36,200/mt and bids at Rs36,000/mt but no deals were reported. A steel mills operator also shared that flow of local scrap has increased, putting pressure on billet prices. The daily index for rebar remained flat at Rs 39,900/mt ex-works.
In Mandi Gobingarh, the daily index for ingot dropped by Rs300/mt at Rs35,200/mt ex-works with fall in local scrap prices. The index for rebar also dropped by Rs300/mt at Rs39,700/mt ex-works on heavy selling pressure.
In Jalna, the bi-weekly index for billet was down by Rs900/mt at Rs36,100/mt ex-works with fall in local scrap prices and rising inventory levels. The index for rebar was down by Rs600/mt at Rs39,600/mt ex-works on Tuesday compared to Thursday on sluggish rebar sales.
In Durgapur, the bi-weekly index for billet was down by Rs800/mt to Rs34,500/mt ex-works following drop in finished steel prices including rebar. The index for rebar was down by Rs1,000/mt and settled at Rs37,000/mt ex-works. Steel mills cited that demand of finished steel is sluggish since last 4-5 days and market sentiments have turned negative.
In Gujarat, the bi-weekly index for billet was down by Rs300/mt to Rs35,300/mt ex-works with rarely bookings. The bi-weekly index for rebar was flat at Rs39,800/mt ex-works.
In Chennai, the bi-weekly index for billet and rebar remained flat at Rs 36,000/mt and Rs40,000/mt, ex-works, respectively.
In Ludhiana, the bi-weekly index for ingot dropped by Rs1,500/mt to settle at Rs 35,900/mt ex-works due to similar rise in local scrap prices.