Ingot and billet prices fell on Tuesday in most Indian secondary markets.
The daily Davis Index for billet in Raipur was down by Rs300/mt ($4/mt) and settled at Rs41,000/mt ($563/mt) ex-works on Tuesday as market participants expect bearish trend in the near term. They are surprised by price volatility in the local steel market since last few days.
Demand for rebar continues to be weak on the second day of the week. Most of the secondary steel units in Raipur are operating at 60-70pc capacity amid shortage of labourers and demand concern.
Offers for pellet sponge stayed firm at Rs29,000/mt ($398/mt) ex-works. The daily index for rebar down by Rs500/mt ($7/mt) to Rs45,500/mt ($625/mt) ex-works Raipur due to sluggish demand.
In Mumbai, the index for billet fell by Rs50/mt to Rs43,650/mt ex-works. Billet offers were at Rs43,700/mt but buyers are in wait-and-watch mode. The index for rebar remained unchanged and settled at Rs49,500/mt ex-works. The bi-weekly index for billet was flat at Rs44,000/mt ex-works Jalna from last Thursday, while rebar decreased by Rs450/mt to Rs50,000/mt ex-works. Rebar sales are at almost 50pc of the production.
In Mandi Gobindgarh, the daily index for ingot down by Rs200/mt to Rs44,200/mt ex-works, in line with the fall in local scrap prices.
In Kutch, the bi-weekly index for billet decreased by Rs700/mt at Rs43,500/mt ex-works following fall in rebar prices. The index for rebar fell by Rs 500/mt to Rs49,800/mt ex-works.
Most of the secondary steel units in Gujarat have cut production due to shortage of workforce and local lockdown in view of COVID-19 surge. Meanwhile, large construction projects are going on as usual but demand from retail segments has been hit.