Ingot and billet prices continued to rise in most Indian secondary markets.
Sources indicate the Chhattisgarh government is set to announce power tariffs by around 6pc soon. The daily Davis Index for billet in Raipur was up by Rs500/mt ($7/mt) at Rs43,500/mt ($585/mt) ex-works on Monday from Friday due to this news about power hike.
The rise in power costs by Rs0.41 per unit will increase the input costs. Mills, therefore, refused to accept lowered bids even though demand remains below their expectations.
Market participants expect demand for finished steel, including rebar, could pick up from September end.
Pellet sponge prices were at Rs30,500/mt ($411/mt) ex-works Raipur. The daily index for rebar settled unchanged at Rs45,200/mt ($608/mt) ex-works Raipur.
In Mumbai, the daily index for billet rose by Rs400/mt to Rs45,200/mt following a rise in rebar prices. The index for rebar was also up Rs400/mt at Rs49,300/mt ex-works.
In Mandi Gobindgarh, the daily index for ingot was up by Rs400/mt to Rs46,100/mt ex-works.