The daily Davis Index for billet in Mumbai on Friday dropped further by Rs750/mt ($10.01/mt) to Rs29,700/mt ($396.52/mt) ex-works following a significant fall in rebar and structural steel products prices. Few billet deals were reported at Rs29,800/mt (397.86/mt) in nearby areas. The daily Davis Index for rebar decreased by Rs500/mt ($6.67/mt) at Rs33,800/mt ($451.26/mt) ex-works Mumbai.
Meanwhile, a few secondary steel mills preferred to sell billets instead of rebar as demand for finished steel products vanished as the week progressed. Heavy rain in most parts of India also deeply hurt trade activities, a situation that is unlikely to change till end of August.
Post monsoon, demand for long products is expected to improve depending on how soon the government spending on large infra projects takes off.
In Raipur, the daily Davis Index for billet – bearish since the beginning of the week — fell by Rs600/mt to settle at Rs29.400/mt ($392.52/mt) ex-works as supply exceeded demand. Pellet sponge offers were at Rs19,600/mt ($261.68/mt) ex -works. Billet makers in Raipur are looking at correction in sponge prices in near term due to limited buying interest. The daily index for rebar was also down further by Rs500/mt to Rs33,000/mt ($440.58/mt) ex-works due to sluggish sales.
Iron pellet prices in Central India increased from Rs6,000/mt ($80.01/mt) in April end to about Rs8,200/mt ($109.47/mt), up by Rs2,200/mt due to supply pressure. While, pellet sponge prices that was at Rs21,500/mt ($287.04/mt) earlier this week, has now come down to about Rs19,700/mt ($263.01/mt), which still higher than normal.
In Mandi Gobindgarh, the daily index for ingot fell by Rs400/mt ($5.34/mt) and settled at Rs32,550/mt ($434.57/mt) ex-works with similar fall in local scrap prices. The daily index for rebar also dropped by Rs400/mt at Rs38,000/mt ($507.34/mt) ex-works with limited trades.