Billet prices dipped in Mumbai and Chennai on Thursday, while it remained largely unchanged in Raipur. The daily Davis Index for billet in Mumbai decreased by Rs250/mt ($3.42/mt) to Rs37,250/mt ($509.92/mt) ex-works following a dip in rebar prices. Rolling mills downsized their purchases of ingot and billet on account of low rebar sales throughout the week. The daily index for rebar fell by Rs500/mt ($6.84/mt) to settle at Rs43,500/mt ($595.48/mt) ex-works.
Market participants are expecting trade activities remains to minimal till the Union Budget presented on February 1. Industry leaders believe the government will focus and invest in infrastructure activities in this budget which will drive demand of steel and cement.
In Raipur, the daily indexes for billet and rebar were flat at Rs35,500/mt ex-works and Rs40,300/mt ex-works, respectively, amid moderate demand. Pellet Sponge traded at Rs24,000/mt ex-works in limited quantities.
Manufacturers in Central India expect Sponge prices to become steady provided iron ore prices don’t go downward. Sponge prices fell by around Rs2,500/mt in Raipur since the beginning of the month but iron ore did not see any major correction in the same period.
In Mandi Gobindgarh, the daily index for ingot was up by Rs400/mt to Rs36,900/mt with marginal rise in local scarp prices. In Ludhiana, the bi-weekly index for ingot was up by Rs400/mt to Rs37,400/mt ex-works from Monday.
In Chennai, the bi-weekly index for billet decreased by Rs500/mt to Rs38,000/mt on account of fall in Sponge prices in Bellary. However, rebar remained flat at Rs44,000/mt ex-works with limited demand.