Ingot and billet fell sharply in most Indian markets as rebar sales were hit by lockdown imposed by the Chhattisgarh government to curb rising COVID-19 cases. The daily Davis Index for billet in Raipur declined by Rs900/mt ($12/mt) to Rs40,100/mt ($537/mt) ex-works as buyers were silent amid strict 10-day lockdown in the capital city or Chhattisgarh from Friday.
Chhattisgarh government also ordered banks to shut in Raipur, which will hit offline transactions. The number of customers who are engages in online transactions is very small, with a majority preferring cash deals. Closure of retail shops will severely hit rebar sales.
Pellet Sponge offers stayed firm at 30,000/mt ($402/mt) ex-works Raipur. The daily index for rebar fell by Rs700/mt ($10/mt) at Rs44,000/mt ($589/mt) ex-works, with hardly any takers.
In Mumbai, the index for billet fell by Rs300/mt to Rs41,700/mt, with complete weekend-lockdown keeping buyers away. The index for rebar settled unchanged at Rs47,900/mt ex -works despite rebar sales not being more than 25pc.
In Mandi Gobindgarh, the index for ingot was down by Rs900/mt to Rs42,600/mt ex-works amid a similar decrease in local scrap prices.