Ingot, billet prices continued to rise on Wednesday with billet prices surging Rs1,500/mt ($20/mt) in the past three days in Central India.
The daily Davis Index for billet in Raipur, Wednesday, increased by Rs600/mt ($8/mt) to settle at Rs42,600/mt ($583/mt) amid higher sponge iron prices and healthy demand. Some billet deals reported at Rs42,200/mt ($577/mt).
In the second half of Wednesday, billet suppliers increased offers following the substantial increase in bids tendered for Odisha Mining Corporation’s (OMC) iron ore e-auctions. The total quantity of iron ore for the auction was 619,000mt.
Market participants believe domestic billet and rebar prices could sustain in the near term due to limited iron ore supply in the Indian markets.
Offers for pellet sponge were further up by Rs700/mt at Rs30,700/mt ex-works. The daily index for rebar rose Rs800/mt to Rs46,300/mt ex-works Raipur. Many rebar deals reported at Rs46,000/mt.
In Mumbai, the index for billet rose Rs100/mt to Rs42,000/mt, while rebar remained flat at Rs48,200/mt ex-works on Wednesday.
In Mandi Gobindgarh, the daily index for ingot increased Rs500/mt to Rs45,500/mt ex-works in line with the rise in local scrap prices.