The daily index for billet Tuesday fell by Rs300/mt ($3.97/mt) in Raipur and settled at Rs27,500/mt ($364.23/mt) ex-works following a significant decrease in finished steel prices. Pellet sponge iron prices were at Rs15,400-15,500/mt ex-works Raipur, down by Rs100-200/mt.
High inventory build-up at steel mills following low demand from end-use sectors such as real-estate developers pulled down rebar prices in central India. The daily Davis Index for rebar dropped by Rs700/mt and settled at Rs31,000/mt ex-works Raipur.
In Mumbai, the daily Davis Index for billets Tuesday fell by Rs100/mt ($1.32/mt) to Rs27,550/mt ($364.9/mt) ex-works. Few billet deals were reported at Rs27,600/mt ex-works. The daily Davis Index for rebar remained flat and settled at Rs31,700/mt ex-works Mumbai.
Mills have continued to hold rebar offers for the last two days, but buyers are not interested in booking at higher prices. Finished steel market across Maharashtra is expected to remains subdued as the state government has extended the lockdown till July 31.
In Mandi Gobindgarh, the daily index for ingot remains unchanged at Rs30,950/mt (409.93/mt) ex-works as the market remained shut.
($1= Rs75.51)