The daily Davis Index for billet in Raipur dipped by Rs100/mt ($1.36/mt) and settled at Rs39,400/mt ($538.32/mt) ex-works as buyers remained inactive. There were no takers for semis products including Sponge iron in Central India. Buyers waited for clarity on mining reforms – including doubling mineral production — that were later approved by the Union Cabinet in a meeting on Wednesday.
Pellet Sponge offers were at Rs25,700/mt ($351.14/mt) ex-works Raipur, down by Rs200-300/mt with hardly any takers. Mill operators found Sponge prices quite high and expect it to fall further due to sluggish demand. The index for rebar remained unchanged at Rs44,300/mt ($605/mt) ex-works Raipur on moderate demand.
In Mumbai, the daily Index for billet increased marginally by Rs100/mt to Rs40,500/mt ex-works on Wednesday despite low demand. Billet offers at Rs40,700/mt and bids at Rs40,500/mt but no deal was reported. Billet buyers are not interested in holding material and are in wait-and-watch mode. The index for rebar was up by Rs400/mt to Rs47,300/mt with healthy sales at increased prices.
In Mandi Gobindgarh, the daily index for ingot dropped by Rs600/mt to Rs39,000/mt, in line with fall in local scrap prices. Market participants also said that trade activity remained low as the northern regions of the country celebrate the festival of Lohri. Market looks a little bearish in the short-term.