The Davis Index for billet increased by Rs500/mt ($6.65/mt) from Friday and settled at Rs29,000/mt ($385.79/mt) ex-works Raipur due to a rise in sponge prices. Pellet sponge iron prices also rose by Rs400-500/mt to Rs17,800-18,000/mt ex-works. The index for rebar increased by Rs500/mt and settled at Rs32,400/mt ($431.02/mt) ex-works. However, market participants said trade activity was subdued on Monday amid the Rakshabandhan festivities in India. Trades are expected to rise on Tuesday on the back of bullish demand for finished steel products including rebar.
Following the announcement of increase in steel prices by primary producers by Rs1,000-2,000/mt in long and flat products for August deliveries, secondary steel producers have also started increasing prices with hopes of recovery in the construction sector.
The Davis Index for rebar in Mumbai increased by Rs300/mt ($3.99/mt) and settled at Rs32,500/mt ($432.35/mt) ex-works. The Davis Index for billet marginally went up by Rs100/mt to Rs29,100/mt (387.12/mt) ex-works Mumbai. Billet offers were Rs29,200/mt and bids at Rs29,000/mt with no deals reported.
In Mandi Gobindgarh, the index for ingot increased by Rs200/mt ($2.66/mt) and settled at Rs31,500/mt ($419.05/mt) ex-works on similar rise in scrap prices. The daily index for rebar increased by Rs200/mt at Rs36,650/mt ($486.23/mt) ex-works.