The daily Davis Index for billet in Raipur increased by Rs500/mt ($6.72/mt) at Rs32,700/mt ($439.57/mt) ex-works on Tuesday on high Sponge iron prices, but with limited buying activity. Pellet Sponge offers were at Rs22,300/mt ($299.77/mt) ex-works with few deals reported at high prices.
The daily Davis Index for rebar in Raipur was up by Rs300/mt at Rs35,000/mt ex-works largely due to increase in ingot and billet prices. Steel mills are bound to increase rebar offers due to cost pressure, but demand is still moderate at high prices.
In Mumbai, the daily index for billet was up by Rs300/mt at Rs33,800/mt ex-works following rise in rebar prices. Some deals were reported at Rs 33,700/mt. The daily index for rebar was up by Rs400/mt to settle at Rs37,200/mt ex-works on better trades.
Industry leaders are upbeat about steel consumption in Q3 and Q4 FY21 with demand picking up in major sectors like engineering, automobile and shipbuilding. However, demand is still lagging from construction sector where rebar is consumed.
In Mandi Gobindgarh, the daily Index for ingot was down by Rs100/mt at Rs34,600/mt while the index for rebar was flat at Rs39,100/mt ex-works with limited trade activities.
In Jalna, the bi-weekly index for billet was up by Rs500/mt to Rs33,600/mt ex-works in line with rise in rebar prices along with increase in local scrap prices. Some billet deals were reported at RS 33,400/mt. The index for rebar was up by Rs400/mt at Rs36,500/mt ex-works on healthy sales.
In Gujarat, the bi-weekly indexes for billet was up by Rs500/mt to Rs33,700/mt ex-works on surge in rebar prices, and for rebar was up Rs1,100/mt at Rs37,600/mt ex-works due to restocking activities.
In Durgapur, the index for billet was up by Rs900/mt to Rs32,700/mt ex-works on increase in Sponge iron and Pig iron prices. A steelmaker said market is silent due to auction of iron ore by Odisha Mining Corporation. The bi-weekly index for rebar surged by Rs1,100/mt to Rs35,200/mt ex-works, but demand is weak at higher prices.
In Chennai, the bi-weekly Davis Index for billet rose by Rs800/mt at Rs 33,800/mt ex-works in line with the rise in rebar prices and index for billet was up by Rs300/mt to Rs37,500/mt.
In Ludhiana, the bi-weekly index for ingot was up by Rs500/mt at Rs 35,100/mt ex-works.
($1=Rs74.39)