Ingot and billet sellers raised offers on the first day of the week. But these price levels are unlikely to sustain due to weak buying from finished steel makers.
The daily Davis Index for billet in Raipur fell by Rs200/mt ($3/mt) to Rs41,300/mt ($557/mt) ex-works on Monday from Friday amid moderate demand. Billet sellers raised offers by Rs400/mt ($5/mt) in the first half of the day, however, buyers did not accept the price increment.
Most secondary mills are planning to cut production by almost 50pc in the next few days, while some may go for a complete shut down due to margin pressure. The situation could continue until finished steel sales revive.
Offers for pellet sponge declined by Rs200-300/mt to Rs29,800/mt ($402/mt) ex-works due to limited buying from induction furnaces. The daily index for rebar was flat at Rs44,500/mt ($600/mt) ex-works Raipur.
In Mumbai, the daily index for billet and rebar remained unchanged at Rs42,000/mt and Rs45,800/mt ex-works, respectively, with limited buying activities.
In Mandi Gobindgarh, the daily index for ingot was down by Rs400/mt to Rs43,300/mt ex-works in line with a fall in local scrap prices.