The daily Davis Index for rebar in Mumbai fell by Rs500/mt ($7/mt) to Rs35,300/mt ($494.6/mt) ex-works Monday driven by a fall in billet prices.
The Union budget for 2020, announced on Feb 1, failed to give rebar prices an immediate lift. Market participants hope the government’s proposal to develop 100 new airports under their UDAN scheme will spur demand for steel in the medium- to long- term.
The daily Davis Index for billet in Mumbai also fell by Rs700/mt ($9.8/mt) to Rs31,200/mt ($437.15/mt) ex-works after domestic and imported scrap prices fell by $4-5/mt. Ferrous scrap prices fell on global oversupply relative to demand.
The daily Davis Index for ingot at Mandi Gobindgarh decreased by Rs600/mt ($8.4/mt) to Rs31,600/mt ($442.76/mt) ex-works, in-step with a fall in ferrous scrap prices by the same amount.
The index for rebar in Raipur also declined by Rs250/mt ($3.5/mt) and settled at Rs33,400/mt ($467.98/mt) ex-works. The index for billets on Monday, settled at Rs29,500/mt ($413.33/mt) ex-works Raipur, down by Rs300/mt ($4.2/mt) on a fall in pellet sponge prices.
Pellet sponge prices in Raipur were at Rs18,800-18,900/mt, down by Rs400-500/mt from Friday.