Billet prices continued to rise due to tight supply as mills have cut production due to shortage of oxygen. Most of their workforce has also gone back to their hometowns.
The daily Davis Index for billet in Raipur, Monday, rose by Rs400/mt ($4/mt) to Rs42,600/mt ($580/mt) ex-works from Friday, due to supply crunch and increase in sponge iron prices. Some billet deals heard at high offers.
Secondary mills in Raipur are operating at 50-60pc capacity utilisation due to shortage of oxygen and workforce. Mill operators noted that production is unlikely to pick-up pace this month.
Buying in the local steel markets has slowed due to restrictions and lockdowns in many states. Market participants are hopeful that demand will increase once lockdowns are lifted, especially in Chhattisgarh and its neighbouring states.
Offers for pellet sponge iron increased by Rs500/mt Rs29,700/mt ex-works, with limited takers. The daily index was rebar was up by Rs300/mt to Rs46,500/mt ex-works Raipur.
In Mumbai, the index for billet dropped by Rs200/mt to Rs45,300/mt while the index for rebar increased by Rs200/mt to Rs50,800/mt ex-works from Friday, despite subdued demand.
In Mandi Gobindgarh, the daily index for ingot was up by Rs300/mt to Rs46,000/mt ex-works, in line with the rise in local scrap prices.