The daily Davis Index for rebar Thursday settled flat at Rs32,500/mt ($426.93/mt) ex-works Mumbai due to limited trading in the finished steel market. Rebar prices have fallen by about Rs1,000/mt ($13.14/mt) since Monday. Buyers are expected to take advantage of this fall in prices.
Steel mills in Mumbai are facing a shortage of labour as most of them have travelled back to their home towns. Manufacturers expect some migrant workers to return in the next few weeks.
The index for billet decreased by Rs300/mt ($3.94/mt) and settled at Rs27,100/mt ($356.01/mt) ex-works Mumbai.
In Raipur, the daily Davis Index for rebar settled flat at Rs32,700/mt ($429.58/mt) ex-works. The daily index for billet fell by Rs300/mt ($3.94/mt) and settled at Rs27,600/mt ($362.58/mt) ex-works Raipur in-line with a fall in pellet sponge prices and ferrous scrap prices. Pellet sponge iron prices were at around Rs14,800 ex-works Raipur, down by Rs200-300/mt.
Steel demand is slightly better in rural areas compared to urban settlements, which is supporting overall sales, said sources at steel mills. Construction activities in West India are yet to pick up due to labour shortage, while in the central and eastern parts of India have seen a modest recovery.
In Mandi Gobindgarh, the daily index for ingot declined by Rs100/mt to Rs30,500/mt ex-works.