The daily index for billet in Raipur on Monday surged by Rs800/mt ($10.87/mt) and settled at Rs30,000/mt ($409.27/mt) ex-works in line with the rise in sponge prices along with improvement in trade activities. Pellet sponge offers were at Rs20,000/mt ($271.84/mt) ex-works, but no deal were reported on Monday at increased prices. Last deal reported was at Rs19,500/mt.
The daily index for rebar increased by Rs350/mt to Rs32,550/mt ($442.43/mt) ex-works Raipur, with few deals reported at index price. The rebar price rise is also supported by the increase in input costs.
Market participants strongly believe that as soon as monsoon subsides in September and labour strength at construction sites returns to 100pc, demand for finished steel products will pick-up during in the second half of the the year to cover the shortfalls in the first half to a large extent.
In Mumbai, the daily Davis Index for billet was marginally up by Rs100/mt and settled at Rs30,550/mt ($415.64/mt) ex-works. Billets offers were at Rs30,600/mt and bids at Rs30,500/mt but no deal reported on Monday. The daily Davis Index for rebar remained flat at Rs33,900/mt ($461.22/mt) ex-works Mumbai with limited trades.
In Mandi Gobindgarh, the daily index for ingot rose by Rs650/mt ($8.84/mt) at Rs33,350/mt ($453.74/mt) ex-works in-line with increase in local scrap prices. The daily index for rebar also rose by Rs650/mt at Rs37,900/mt ($515.64/mt) ex-works as demand improved.