The daily Davis Index for billet in Mumbai fell by Rs100/mt ($1.36/mt) and settled at Rs30,700/mt ($419.97/mt) ex-works on account of subdued buying from rolling mills along with dip in prices in other domestic markets as well. The daily Davis Index for rebar in Mumbai remained flat for the third day at Rs33,900/mt ($463.74/mt) ex-works with limited trades.
EAF and IF mills in Western India that mainly rely on imported scrap saved on input costs as Rupee became stronger against US dollar, that increased their profit margins. The rupee was valued at Rs73.11 against US$1 on September 2, compared to Rs74.9 in August 1.
In Raipur, the daily index for billet decreased by Rs300/mt and settled at Rs29,700/mt ($406.29/mt) ex-works with a few deal heard at index prices. Pellet sponge traded at Rs20,000/mt,($273.59/mt) ex-works, down by Rs100-200/mt from the prior day. While, the daily index for rebar also decreased by Rs200/mt to Rs32,600/mt ($445.96/mt) ex-works.
Secondary steel mills in Central India are optimistic that finished steel market be supported by higher iron ore prices and strong demand from the export market. Mill owners are mainly concerned about the massive increase in export of iron pellet and demanded the government to levy at least 30pc export duty on pellets.
In Mandi Gobindgarh, the daily index for ingot marginally fell by Rs200/mt to settle at Rs33,000/mt ($452.8/mt) ex-works in line with fall in local scrap prices. The daily index for rebar rose marginally by Rs50/mt to Rs38,000/mt ($519.83/mt) ex-works.