India reignites its growth engine as construction activities slowly resume in North India. The daily Davis Index for rebar in Raipur Friday increased by Rs200/mt ($2.63/mt) to Rs34,700/mt ex-works as ingot and billet prices remained high.
The index for billet rose by Rs50/mt and settled at Rs27,900/mt ex-works Raipur as sponge iron and ferrous scrap price found support. Pellet sponge prices in Raipur were at Rs15,400-15,500/mt ex-works, unchanged from the prior day.
Local governments in Delhi region have clarified that no permission is required to restart construction work outside notified containment zones. Construction sites have to adhere to social distancing and sanitisation guidelines put in place by authorities. Since early May real estate developers who have labour available at the site have resumed construction. The clarity provided by organisations such as Noida Authority will restart stalled construction work and boost the demand for steel rebar and other materials.
In Mandi Gobindgarh, the daily index for ingot fell by Rs300/mt ($3.95/mt) to Rs30,750/mt ex-works due to similar a fall in ferrous scrap prices.
The daily Davis Index for rebar remained unchanged at Rs34,300/mt ex-works Mumbai. Manufacturing and construction work in the region resumed with limited workforce. Most steel mills expect rebar demand will take more time to return as large infra projects are yet to start. The daily index for billet was increased by Rs50/mt ($0.65/mt) to Rs28,700/mt ($378.22/mt) ex-works Mumbai.
($1= Rs75.88)