The daily Davis Index for billet in Mumbai fell for the third consecutive day by Rs350/mt ($4.76/mt) at Rs30,200/mt ($411.44/mt) ex-works on Wednesday in anticipation of fall in imported scrap prices in the near term coupled with subdued buying from rolling mills. A few deals were reported at index prices. The daily Davis Index for rebar dropped by Rs300/mt at Rs33,900/mt ($461.85/mt) ex-works on moderate demand. Heavy rainfall in Mumbai dampened trade activities.
In Raipur, the daily Davis Index for billet was down by Rs350/mt at Rs29,300/mt ($398.85/mt) ex-works on Tuesday as market sentiments were weak and sponge iron prices decreased. Pellet sponge offers are now at Rs19,000/mt ($258.85/mt) ex-works, with no takers at these prices.
International ore prices also slid below $120/mt CFR China in the spot market which put pressure in domestic market too. Meanwhile, the daily index for rebar was down by Rs400/mt at Rs32,800/mt ($446.86/mt) ex-works as supply exceeded demand.
In Mandi Gobindgarh, the daily index for ingot dropped by Rs250/mt at Rs32,400/mt ($441.05/mt) ex-works in line with fall in scrap prices. Traders are expected to be bearish in near term. The index for rebar was down by Rs200/mt at Rs37,400/mt ($509.5/mt) ex-works.