The daily Davis Index for billet in Raipur dropped by Rs300/mt ($4.02/mt) at Rs31,500/mt ($422.64/mt) ex-works on Friday due to a dip in demand and inactivity of buyers due to market uncertainty in near term. Pellet Sponge offers were at Rs21,700/mt ($291.15/mt) ex-works but no buying interest was seen due to high price. Price correction is expected in the coming days.
The daily index for rebar fell by Rs100/mt and at Rs34,200/mt ex-works Raipur amid weak demand. Few steel mills cited finished steel including rebar sales to be sluggish throughout the week. They are not positive about demand in the next week as well due to the State elections in Bihar and by-elections in Madhya Pradesh.
In Mumbai, the daily index for billet in Mumbai fell by Rs200/mt at Rs33,000/mt ex-works on Friday with no deals heard at index price. Most of billet makers in Mumbai are looking for price correction by about Rs500/mt looking at sluggish buying from the re-rolling mills. The daily index for rebar remained unchanged at Rs36,600/mt ex-works despite moderate demand at higher prices.
Meanwhile, primary mills such as Sail, RINL, Tata Steel, JSW and JSPL are expected to hike prices by Rs1,000-1,500/mt ($14-20/mt) early November anticipating strong demand from large infrastructure projects after Diwali in mid-Nov, as per market participants. The price rise is also supported by the shortage of long products material.
In Mandi Gobindgarh, the daily Davis Index for ingot was down by Rs200/mt at Rs34,100/mt in line with fall in scrap prices. The index for rebar was also down by Rs200/mt at Rs38,600/mt ex-works.