The daily index for billet in Raipur rose by Rs150/mt ($2.04/mt) to settled at Rs30,500/mt ($416.09/mt) ex-works on Monday from last Friday, largely due to tight supply along with surge in demand on the first day of the week. Some deals were reported at index price for larger quantity.
The index for rebar remained unchanged at Rs33,200/mt ex-works Raipur with moderate demand. Sponge iron prices are still trading on the higher side at Rs19,800/mt. Mills in Central India are optimistic in terms of finished steel demand going forward.
Industry leaders believe that next two years will be best time for infrastructure sector in India with many projects in the pipeline. Demand is expected to come from roads, railways, real estate and other sectors too.
In Mumbai, the daily Davis Index for billet in Mumbai remained firm at Rs31,800/mt ex-works while the index for rebar fell by Rs100/mt to settle at Rs35,400/mt ex-works. Despite marginal fall in rebar prices, steel mills are expecting prices of billet and rebar to increase in the near term as rebar demand is picking-up, largely from retail segments. However, it needs some more time to achieve the pre-COVID-19 level.
On Monday, steelmaker RINL increased prices of wire rods and round by Rs500/mt for rest of the October deliveries. This is the second price hike by the company in the month. Rebar prices remained unchanged.
In Mandi Gobindgarh, the daily Davis Index for ingot was up by Rs150 at Rs33,300/mt with increase in trades. The index for rebar also increased by Rs100/mt to Rs37,800/mt ex-works.
($1=Rs73.34)