The daily Davis Index for billet in Raipur was up by Rs100/mt ($1.35/mt) to Rs38,200/mt ($518.31/mt) ex-works on Wednesday, with some deals reported at the index price. Billet sellers are citing moderate demand at increased prices and thus believe the firmness could sustain in the coming days.
Pellet Sponge offers were at around Rs26,000/mt ($352.78/mt) ex-works Raipur, with no takers at those prices. The index for rebar increased by Rs800/mt ($10.8/mt) to Rs42,600/mt ($578/mt) ex-works Raipur, with limited trading.
In Mumbai, the daily index for billet fell by Rs400/mt to Rs40,000/mt ex-works. Sellers were distressed to sell and thus reduced asking prices. Offers were at Rs40,100/mt ex-works, but even at those levels, buyers were unwilling for trades. The index for rebar, however, increased by Rs200/mt to Rs45,400/mt ex-works as demand outpaced supply.
The market sentiment could turn negative in the coming days considering the bullishness in domestic steel prices. Prices have been on an uptrend for five months at the minimum. Many associations, particularly those representing units falling in the MSME sector, have urged the government to control price levels. Steel mills in Mumbai believe in the bullish market sustaining with the peak season about to start.
In Mandi Gobindgarh, the daily index for ingot declined by Rs50/mt to Rs38,450/mt ex-works, while the index for rebar was down by
Rs100/mt to Rs43,000/mt ex-works.
($1=Rs73.71)