The daily Davis Index for billet in Raipur increased by Rs700/mt ($9.51/mt) at Rs36,300/mt ($493.87/mt) ex-works on Monday from Friday. Billets sellers are quoting not below Rs36,300/mt amid high Sponge iron prices, however, deals were not heard at these prices. The index for rebar rose by Rs500/mt ($6.8/mt) at Rs39,100/mt ($531.97/mt) ex-works with demand largely coming in from outstation markets.
Pellet Sponge offers was at Rs25,000/mt ($340.13/mt) ex-works Raipur, up by Rs100-200/mt but with no takers. Few mills reported that Sponge sellers are under pressure due to less number of trades last week.
Industry leaders believe that going forward, iron ore availability is expected to improve in Odisha and Karnataka, which may put pressure on Sponge iron prices. They expect steps taken by the government to revive manufacturing sector to lift steel demand.
In Mumbai, the daily index for billet was up by Rs700/mt and settled at Rs38,600/mt ex-works on higher imported and local scrap prices. The index for rebar rose by Rs400/mt at Rs42,900/mt ex-works due to sustained demand.
In Mandi Gobindgarh, the daily index for ingot rose by Rs300/mt at Rs38,200/mt ex-works, in line with the fall in scrap prices, while the index for rebar increased by Rs500/mt at Rs43,000/mt ex-works.