The daily Davis Index for billet in Mumbai was up by Rs250/mt ($3.39/mt) and settled at Rs38,150/mt ($518.37/mt) ex-works on Wednesday with active trades reported on the back of healthy rebar sales. The index for rebar rose by Rs200/mt ($2.71/mt) at Rs42,500/mt ex-works.
Few secondary steel mills in Mumbai found demand to be quite strong with the housing sector contributing mainly from the rural markets, and expect to sustain going forward. The billet and rebar prices are also being supported by uptrend in imported scrap prices, particularly in the western region.
State-owned producer Steel Authority of India Limited (Sail) has raised prices in long and flat products by Rs1,500/mt for rest of December deliveries, according to Davis Index sources. New prices will be effective from December 9.
In Raipur, the daily index for billet dropped by Rs200/mt at Rs35,500/mt ex-works on limited buying. Trading was quite dull for the last couple of days, but billets sellers are not ready to reduce offers further as it would squeeze the margin.
Pellet Sponge offers were still at Rs25,000/mt ex-works Raipur with limited takers. The index for rebar remained unchanged at Rs38,400/mt ex-works.
In Mandi Gobindgarh, the daily index for ingot was down by Rs200/mt at Rs37,600/mt ex-works with very few deals being heard, while the index for rebar was flat at Rs42,000/mt ex-works.