Ingot and billet prices in India were flat on Monday following price cuts by primary steel mills. Slower domestic demand prompted primary steelmakers to lower rebar and HRC prices for July deliveries.
The daily Davis Index for billet in Raipur, Monday, was flat at Rs40,700/mt ($548/mt) ex-works from Friday due to limited buying. Most sellers raised offers, but buyers did not accept higher prices.
Pellet sponge offers were at Rs29,000/mt ($390/mt) ex-works Raipur with not many takers. The daily index for rebar dip by Rs200/mt to Rs43,500/mt ($585/mt) ex-works Raipur due to sluggish rebar sales.
Indian primary steelmakers have reduced HRC and rebar prices by Rs1,200-2,000/mt ($16-27/mt) for July deliveries. The arrival of the monsoon has impacted steel demand in the domestic market. The price cut was also driven by a dip in HRC prices in the export markets and increased supply by large mills operating at 85-90pc capacity utilization, despite weak sales.
After the price cuts, primary mills’ rebar will cost around Rs50,000 ($673/mt) ex-Mumbai for projects, while the retail price would be higher by Rs1,000/mt.
In Mumbai, the daily index for billet settled flat at Rs41,200/mt, while the index for rebar has remained unchanged for the last seven days at Rs45,800/mt ex-works.
In Mandi Gobindgarh, the daily index for ingot rose Rs300/mt to Rs42,800/mt ex-works.