Ingot and billet prices in Central and East Indian markets have risen sharply as manufacturers are under the pressure due to rising costs. The daily Davis Index for billet in Raipur surged by Rs1,100/mt ($15/mt) to Rs43,700/mt ($596/mt) ex-works on Tuesday, due to sharp rise in sponge iron prices. Some billet deals were reported at Rs42,500-42,600/mt ($579-581/mt).
Domestic sponge iron witnessed a sharp increase in the last two days as market participants expect NMDC to increase prices for May deliveries. The prices hike is also attributed to rise in iron ore pellet prices, now at Rs16,500/mt ex-works Raipur. Offers for pellet sponge iron increased by Rs1,000/mt to Rs31,000/mt ex-works, with buyers showing limited interest. The daily index was rebar was up by Rs1,000/mt to Rs47,500/mt ex-works Raipur.
On Monday, rebar demand was healthy but it lost steam on Tuesday after prices increased. In Mumbai, the index for billet and rebar remained unchanged at 45,200/mt and Rs50,800/mt ex-works, respectively.
In Mandi Gobindgarh, the daily index for ingot was up by Rs600/mt to Rs46,600/mt ex-works, in line with the rise in local scrap prices.