Ingot and billet prices slipped on Wednesday in Raipur and Mandi Gobindgarh. The daily Davis Index for billet in Raipur dipped by Rs400/mt ($5.48/mt) to Rs33,400/mt ($458.16/mt) ex-works amid fall in offers. Billet suppliers were forced to reduce offers but buyers still did not show interest, preferring to wait-and-watch.
Pellet Sponge offers stayed firm at Rs23,200/mt ($318.24/mt) ex-works while the index for rebar was flat at Rs39,000/mt ($534.97/mt) ex-works Raipur – with limited takers.
In Mumbai, the daily index for billet fell by Rs100/mt ex-works with a few deals reported at index price. Secondary mills continued to hold rebar prices for the third straight day despite weak demand, with the index settling at Rs42,500/mt ex-works.
There is an increased supply of rebar from Jalna to Mumbai market at lower prices in the last couple of days which put steel mills in Mumbai under pressure.
In Mandi Gobindgarh, the daily index for ingot was up by Rs500/mt to Rs35,500/mt with a fall in domestic scrap prices.
Indian ingot, billet and rebar prices have corrected downward by Rs6,000-7,000/mt across the secondary market since peaking at the beginning of the year, however, Sponge iron prices fell by Rs3,000-3,500/mt in the same period in Central India. Thus, mills are expecting some more price correction for Sponge iron.
Meanwhile, international iron ore prices shot from $80/mt in April 2020 to $173/mt on Jan 21 2021, touching a nine-year high before softening to its current level of $150/mt.