Rebar prices rose in Mumbai’s secondary market on Wednesday despite weak sales. Rebar dealers in larger states like Maharashtra were reluctant to stock up amid subdued end-user demand.
The daily Davis Index for rebar in Mumbai rose by Rs200/mt ($3/mt) to Rs49,500/mt ($667/mt) ex-works on Wednesday despite weak sales.
In Mumbai, rebar demand was healthy on Tuesday, but buyers shied away from the market on the back of the hike in prices. Rebar dealers in larger states like Maharashtra are in a wait-and-watch mode as they expect prices to decrease during the week cued by a substantial drop in international iron ore prices.
The international iron ore price dropped by around 35-40pc from the peak levels since May but the fall has been steeper in August. The index for billets was flat at Rs44,000/mt ex-works Mumbai with few buyers.
In Raipur, the daily index for billet dipped by Rs150/mt ($2/mt) to Rs42,100/mt ($567/mt) amid few trades. Pellet sponge prices were unchanged at Rs30,200/mt ex-works Raipur with limited buyers.
Secondary mills expect sponge iron prices to drop claiming prices are still on the higher end. The index for rebar fell by Rs200/mt to Rs44,800/mt ex-works Raipur.
In Mandi Gobindgarh, the daily index for ingot fell by Rs50/mt to Rs45,050/mt ex-works.