Billet prices dropped significantly in Central India as buyers stayed away due to low business activities.
The daily Davis Index for billet in Raipur dropped by Rs1,000/mt ($14/mt) to Rs42,800/mt ($586/mt) ex-works on Tuesday amid lack of demand. With lockdown extended till May 31 in most Indian states, overall steel consumption is expected to remains low till then. Secondary mills expect domestic steel demand to remain subdued in the near term.
Meanwhile, billet suppliers are eagerly trying to sell in the export market due to better realisation. A few major mills negotiating billet export deals at around $700-705/mt, though deals were not confirmed.
Offers for pellet sponge iron dipped to Rs30,700/mt ($420/mt) ex-works with limited takers. The daily index for rebar was down by Rs1,000/mt to Rs47,000/mt ($643/mt) ex-works Raipur.
In Mumbai, the index for billet decreased by Rs200/mt to Rs44,800/mt following a fall in rebar prices. The index for rebar was down by Rs300/mt to Rs50,700/mt ex-works.
In Mandi Gobindgarh, the daily index for ingot was down by Rs300/mt Rs46,200/mt ex-works owing to a drop in local scrap prices.