Ingot and billet prices fell on Tuesday at most Indian secondary markets as finished steel sales dampened
The daily Davis Index for billet in Mumbai dropped by Rs700/mt ($10/mt) to settle at Rs43,000/mt ($590/mt) on Tuesday due to sluggish rebar sales.
The daily index for rebar fell by Rs600/mt ($8/mt) to Rs48,000/mt ($658/mt) ex-works Mumbai. Mills also reduced prices of structural products by Rs1,500/mt ($20/mt) on Tuesday.
Rebar sales were weak on Monday as well. Traders expect it the situation to be the same in Mumbai and Jalna in the week. Forecast of heavy rain in some districts of Maharashtra, including Mumbai, between June 9-12 also led to low rebar sales.
A steel mill operator in Jalna said that Maharashtra’s government has recently removed subsidy of Rs1.25 per unit for May bills, due to lack of funds. The removal of subsidy will increase cost of production. However, secondary steel mills in the state are unable to increase finished steel prices as demand is bearish due to adverse market conditions.
In Raipur, the daily index for billet dipped by Rs200/mt to Rs42,700/mt and index for rebar was down by Rs400/mt to Rs46,500/mt ex-works. Offers for pellet sponge were firm at Rs30,800/mt ex-works.
In Mandi Gobindgarh, the daily index for ingot decreased by Rs800/mt to Rs46,000/mt ex-works.