Ingot and billet prices registered a marginal rise on limited production as almost all secondary steel units in India are reeling under shortage of oxygen cylinders.
The daily Davis Index for ingot in Mandi Gobindgarh was up by Rs400/mt ($5/mt) to Rs44,500/mt ($598/mt) ex-works on Wednesday due to limited production by induction furnaces and re-rolling mills.
Secondary steel units in Mandi, Mumbai, and Raipur have enough oxygen to sustain production only for the next few days. Few integrated steel units in Raipur that have their own oxygen plants could continue to operate. Meanwhile, the state government of Punjab has instructed the local steelmakers to divert their entire oxygen supply for medical purpose to meet the shortfall.
In Raipur, the daily Davis Index for billet was up by Rs200/mt ($3/mt) to Rs41,000/mt ($551/mt) ex-works, taking a cue from increased prices in Mandi Gobindgarh. Offers for pellet sponge iron remained unchanged at Rs28,500/mt ($383/mt) ex-works Raipur with limited takers. The daily index for rebar was flat at Rs46,500/mt ($625/mt) ex-works.
In Mumbai, the index for billet decreased by Rs500/mt to Rs43,500/mt ex-works following a fall in rebar prices. The index for rebar was down by Rs300 at Rs49,200/mt ex -works on low demand. On Tuesday, a few mills from Kutch, Gujarat, sold billet in Mumbai at Rs43,800/mt del mill.