The daily Davis Index for rebar in Mumbai Thursday rose by Rs300/mt ($4.07/mt) and settled at Rs34,200/mt ($464.04/mt) ex-works amid a slight rise in construction activities. Resumption of works at real estate projects is driving the recovery of secondary rebar market. Overall, steel mills are bullish in terms of demand revival in the upcoming week.
The daily Davis Index for billet in Mumbai rose by Rs100/mt ($1.35/mt) to Rs30,900/mt ($419.83/mt) ex-works. Billet offers were at Rs31,000/mt on Thursday but buyers were less interested in bidding as they have booked healthy quantities early in the week at Rs30,700-30,800/mt.
Rebar demand is substantially better this week compare to the past few weeks, said a major Mumbai-based trader. Trading activities have reached to 70-80pc of pre-COVID-19 levels, he added.
In Raipur, the daily index for billet rose marginally by Rs50/mt ($0.67/mt) to Rs29,700/mt ($403.52/mt) ex-works on higher sponge iron prices. Pellet sponge offers were at Rs19,500/mt ($264.94/mt) ex-works, but no deal heard. The daily index for rebar is flat at Rs33,000/mt ($448.36/mt) ex-works as market is almost shut on occasion of a local festival.
In Mandi Gobindgarh, the daily index for ingot fell by Rs200/mt to settle at Rs32,600/mt ($442.93/mt) ex-works in line with a fall in scrap prices. The index for rebar remained flat at Rs37,700/mt ($512.22/mt) ex-works on limited trades.
In Durgapur, the bi-weekly index for rebar and billet remained unchanged at Rs33,300/mt ($451.8/mt) and 30,700/mt ($416.5/mt) ex-works, respectively, on Thursday as trading remained low due to local festivity. No deals were reported.
In Chennai, the scenario was no different, the bi-weekly, Davis Index for rebar and billet remained flat at Rs 35,500/mt ($481.6/mt) and 31,200/mt ($423.30/mt) amid sluggish demand for finished steel.
In Jalna, the bi-weekly index for billet surge by Rs400/mt to Rs30,400/mt ($413.04/mt) ex-works from Tuesday in-line with rise in rebar prices. Last billet deal reported at Rs30,200/mt. The bi-weekly index for rebar rose by Rs200/mt at Rs33,800/mt ($459.23/mt) ex-works on health demand.
In Gujarat, the bi-weekly index for rebar rose by Rs100/mt to Rs34,000/mt ($461.95/mt) ex-works. The bi-weekly index for billet surged by Rs400/mt to Rs30,950/mt ($420.51/mt) ex-works on Thursday but no trades concludes at higher prices.
In Ludhiana, the bi-weekly index for ingot increased by Rs150/mt to Rs 32,900/mt ($447.01/mt) ex-works with a similar rise in local scrap prices.