The daily index for billet in Raipur fell by Rs150/mt ($73.34/mt) and settled at Rs30,250/mt ($412.46/mt) ex-works on Friday with a few trades being reported at index prices. The index for rebar remained flat at Rs33,200/mt ex-works though its demand has been sluggish through-out the week, rebar manufacture reported. Sponge iron offers were at Rs19,600/mt down by Rs100-200/mt. A deal was reported at Rs19,700-19,800/mt.
Since the beginning of October, steel mills in Raipur (Central India) are facing extreme cost pressures as prices of Sponge iron increased more compare to billet and rebar. So far, Sponge iron prices rose by about Rs1,500/mt, while billet and rebar prices rose by Rs1,000/mt. The surge in sponge iron prices has eaten into the profitability of rolling mills.
In Mumbai, the daily Davis Index for billet in Mumbai fell by Rs200/mt to settle at Rs31,800/mt ex-works as buyers are targeting lower prices. Steel mills are expecting further drop in price as buyers are not interested in bidding. The index for rebar remained flat at Rs35,500/mt ex-works Mumbai.
Traders in Mumbai shared that rebar demand was quite good in first three days of the week, but finished steel market lost steam on Thursday and Friday. If demand does not bounce back, mills could reduce rebar offers in the coming days.
In Mandi Gobindgarh, the daily Davis Index for ingot remained unchanged at Rs33,150/mt with limited trades while the index for rebar fell by Rs100/mt to Rs37,700/mt ex-works.