The daily Davis Index for rebar Monday dropped by Rs1,200/mt ($15.77/mt) from Friday to Rs33,000/mt ex-works Raipur amid sluggish demand from the construction sector. Prices of ingots and billets dropped by Rs700/mt.
Secondary steel mills in Central India are operating at around 70-80pc capacity. Mills are likely to lower their output in the coming days on the back of weak demand. Also, the onset of monsoon is likely to delay construction activities impacting the demand and prices of long steel products.
The daily index for billet fell by Rs700/mt ($9.20/mt) and settled at Rs28,250/mt ex-works Raipur in-line with a fall in pellet sponge prices. Pellet sponge iron prices were at around Rs15,300-15,400/mt ex-works Raipur on Monday, down by Rs300-400/mt.
In Mumbai, the daily Davis Index for rebar dropped by Rs800/mt at Rs33,500/mt ex-works in-line with a fall in semi-finished steel prices. Weak demand for finished steel also pulled the prices down. Secondary steel mills in the region are operating at around 40-50pc capacity as they continue to grapple with a shortage of workers. Besides, Mumbai and its neighbouring areas are reporting a steep increase in COVID-19 cases.
The index for billet decreased by Rs800/mt and settled at Rs28,250/mt ex-works Mumbai. Billets offer were at 28,300/mt and bid at Rs28,100/mt, but no deals were reported.
In Mandi Gobindgarh, the daily index for ingot declined by Rs500/mt at Rs30,850/mt ex-works on similar fall in ferrous scrap prices.
($1= Rs76.07)