The daily Davis Index for billet in Mumbai Monday rose by Rs650/mt ($8.86/mt) to Rs30,900/mt ($421.55/mt) ex-works from Friday in-line with a rise in rebar prices. Few billet deals reported at index prices. The index for rebar was also up by Rs600/mt ($8.18/mt) at Rs33,800/mt ($461.11/mt) ex-works Mumbai. The demand for finished steel including rebar was extremely robust on Friday and Saturday but the week started with moderate bookings on Monday.
Primary steel mills such as RINL based in South India has also raised long steel prices by Rs 1,000-1,200/mt for October deliveries, but rebar prices were raised by just Rs200/mt learnt Davis Index.
In Raipur, the daily index for billet Monday rose by Rs800/mt to settle at Rs29,800/mt ex-works Raipur from Friday amid an increase in sponge iron prices. Pellet sponge traded at Rs19,300/mt ex-works, up by Rs400-500/mt from the previous week on healthy booking. The daily index for rebar rose by Rs 800/mt Rs at Rs32,800/mt ex-works Raipur. A steel mill owner shared bookings are not very healthy following the price hike, but buyers are expected to be back soon.
In Mandi Gobindgarh, the daily Davis Index for ingot rose by Rs600/mt to settle at Rs32,600/mt in line with a rise in scrap prices. The index for rebar was up by Rs400/mt to Rs37,600/mt ex-works. Mills acknowledged the surge in prices over the last few days however they rued demand is not very significant at higher prices.