Prices for ingots and billets are under pressure in most Indian secondary steel markets. The daily Davis Index for billet in Raipur slipped by Rs300/mt ($4/mt) to Rs40,700/mt ($540/mt) ex-works on Tuesday due to limited buying interest shown by the re-rolling mills. Billet suppliers are also facing transport issues for outstation market amid the current lockdown restrictions in Raipur.
Few steel mills in Raipur expect demand for finished steel, including rebar, to remain weak till the COVID-19 situation is not brought under control. Some labourers living in steel mills’ premises have also tested positive for the virus. Consequently, mills are staring at shortage of labour which will impact production as well.
Offers for pellet Sponge iron stayed flat at 29,300/mt ($389/mt) ex-works Raipur. The daily index for rebar was down by Rs200/mt ($3/mt) at Rs44,800/mt ($595/mt) ex-works.
In Mumbai, the index for billet remained flat at Rs41,500/mt ex-works with limited trade activity. The index for rebar settled unchanged at Rs47,900/mt ex -works. In Mandi Gobindgarh, the index for ingot decreased by Rs300/mt to Rs43,300/mt ex-works amid similar decline in local scrap prices.
In Chennai, the bi-weekly index for billet and rebar remained flat at Rs44,000/mt and Rs49,000/mt ex-works, respectively. Steel market are quiet on account of local festival in South India for next two days.