Billet and rebar prices fell in Raipur but increased in Mumbai on Monday.
The Davis Index for billet in Raipur fell to Rs42,200/mt ($563/mt) ex-works, down by Rs400/mt from Friday. The index for rebar fell by Rs700/mt to Rs47,000/mt ex-works. The Chhattisgarh government has extended the lockdown until April 26 which has dampened the sentiment.
Economic activity in steel downstream segments has come to a standstill. Lack of oxygen has also kept mills from working at usual capacity, which could lead to short supply once the lockdown ends. Offers for pellet sponge at Rs30,000/mt; down by Rs300/mt from Friday.
In Mumbai, the index for rebar rose Rs1,300/mt to Rs51,300/mt ex-works; while billet fell to Rs44,500/mt ex-works, down by Rs200/mt. Steel production in Maharashtra’s steel city Jalna has declined by over 50pc with mills diverting their oxygen supply for medical use. Most end-users in the state have thus turned to Mumbai, albeit only to meet their urgent steel requirement, giving prices a lift.
In Mandi Gobindgarh, the index for ingot fell Rs600/mt to Rs43,700/mt ex-works with a drop in domestic scrap prices.