Ingot and billet prices started to recover on Friday after prices declined by Rs1,000/mt ($14/mt) in the past three days. The daily Davis Index for billet in Raipur increased by Rs600/mt ($8/mt) to Rs38,500/mt ($527/mt) ex-works following an increase in rebar prices.
Freight cost increased by Rs200-400/mt ($3-5/mt) from Raipur to various regions in Maharashtra and Gujarat depending on the location. With the rise in transportation cost, billet sales in outstation markets have become unviable.
Pellet Sponge offers were unchanged at Rs27,000/mt ($370/mt) ex-works with limited buying. The index for rebar rose by Rs300/mt ($4/mt) to Rs42,500/mt ($582/mt) ex-works Raipur amid moderate demand.
In Mumbai, the daily index for billet increased by Rs400/mt to Rs41,200/mt ex-works with limited deals, while the index for rebar remained flat at Rs46,600/mt ex-works.
Few secondary steel mills in Mumbai have started submitting tenders to supply rebar for the construction of road and highway projects. The central government earlier this year allowed the usage of secondary steel if the quality standards meet. Before the amendment, only primary steel was allowed in the construction of roads and highways.
In Mandi Gobindgarh, the daily index for ingot rose by Rs500/mt to Rs40,200/mt ex-works.
($1=Rs73.06)