Billet and rebar prices remained firm in Mumbai and Jalna as raw material prices increased due to a supply crunch in West India.
The daily Davis Index for billet in Mumbai rose by Rs300/mt ($4/mt) to Rs44,500/mt ($598/mt) ex-works on Tuesday amid an increase in scrap prices coupled with a healthy demand. The index for rebar settled by Rs300/mt at Rs48,500/mt ($651/mt) ex-works.
Secondary steelmakers based in Mumbai and Jalna witnessed a healthy rebar demand as traders restocked material in hopes of the market gaining momentum as soon as the rainy season ends. Truck movement in the area has also been affected due to heavy rainfall in the region for the past week.
In Jalna, the bi-weekly index for billet rose by Rs700/mt ($9/mt) to Rs44,700/mt ($600/mt) ex-works from last Thursday, while the index for rebar was up by Rs200/mt at Rs47,700/mt ($641/mt) ex-works.
In Raipur, the daily index for billet settled unchanged at Rs42,300/mt on limited deals. The index for rebar fell by Rs200/mt to Rs44,800/mt ex-works due to sluggish sales. Pellet sponge offers were at Rs29,900/mt ex-works Raipur.
In Mandi Gobindgarh, the daily index for ingot fell by Rs300/mt to Rs45,300/mt ex-works as scrap prices lost steam.
In Chennai, the bi-weekly index for billet and rebar settled unchanged at Rs42,500/mt and Rs47,000/mt, respectively. Mills expect demand to pick up from early August.