The daily Davis Index for billet marginally fell by Rs100/mt ($1.35/mt) to Rs30,000/mt ($407.05/mt) ex-works on Friday on limited deals. Few steel mills operators in Mumbai informed Davis Index that demand for finished steel including rebar is still not encouraging which is unusual for Sep-end. Secondary steel market is reeling under uncertainty and prices have been volatile since the beginning of the month.
Scrap availability in Maharashtra has increased since last few days as mills in Nashik and Pune have completely shut down operations due to short supply of oxygen. Those supplying scrap to these mills have diverted their sales to Mumbai or Jalna-based mills. The index for rebar dropped by Rs200/mt to Rs33,500/mt ex-works Mumbai on limited trades.
In Raipur, the daily Index for billet in Raipur dropped by Rs200/mt to settle at Rs29,300/mt ($398.09/mt) ex-works as supply exceeded demand. Pellet sponge trades were heard at Rs18,800-18,900/mt ex-works. Selling pressure persists in sponge-based market across India as supply of iron ore or pellets is gradually improving, steel mill operators in Raipur told Davis Index. The daily index for rebar settled flat at Rs32,800/mt ($445.04/mt) ex-works.
In Mandi Gobindgarh, the daily index for ingot fell by Rs150/mt at Rs32,600/mt ($442.33/mt) ex-works in line with fall in local scrap prices along with low trading activity. The index for rebar was fell by Rs100/mt to Rs37,500/mt ($508.81/mt) ex-works.