The daily Davis Index for rebar rose by Rs500/mt ($6.68/mt) and settled at Rs32,000/mt ($427.97/mt) ex-works Mumbai on the back of rise in billet prices and improved domestic demand.
Steel mills are witnessing a gradual rise in domestic demand since few days largely from the infrastructure and construction activities in addition to other industries like engineering, and capital goods industry. Labours are also getting back to work for construction projects which pushed the demand of construction materials.
The daily Davis Index for billets surged by Rs500/mt from Friday and settled at Rs29,500/mt ($394.54/mt) ex-works Mumbai.
In Raipur, the daily Davis Index for rebar increased by Rs700/mt and settled at Rs32,200/mt ex-works Raipur. The daily index for billet rose by Rs500/mt and settled at Rs29,300/mt ex-works due to increase in pellet sponge iron and local scrap prices. Pellet sponge iron prices traded at Rs17,400-17,500/mt ex-works Raipur, up by Rs200-300/mt.
There is continuous drop in availability of sponge iron in Central India which may provide price support in near term.
In Mandi Gobindgarh, the daily index for ingot rose by Rs300/mt to Rs31,050/mt ex-works on Monday with a similar rise in scrap prices. The daily index for rebar remained flat at Rs36,050/mt ex-works.