Low inventories spiked up the price of rebar in Mumbai. A few secondary rebar mills in Mumbai Wednesday raised rebar offers by Rs400-500/mt on reduced inventory but trades were thin at higher prices.
Mills are trying to liquidate their older inventory before resuming production. Most secondary steel mills in Maharashtra are based in Mumbai and Jalna, mills in both these regions are expected to remain shut until May 3. In Mumbai, the daily Davis Index for rebar rose by Rs500/mt ($6.6/mt) and settled at Rs34,300/mt ($453.10/mt) ex-works Mumbai, while the index for billet remained unchanged at Rs28,700/mt ($379.12/mt) ex-works.
In Raipur, the daily Davis Index for rebar remained unchanged at Rs31,500/mt ($416.11/mt) ex-works. Steel mills in Raipur reported thin trades that too from neighbouring states of Madhya Pradesh and Maharashtra. The daily index for billet remained flat at Rs26,500/mt ($350.06/mt) ex-works Raipur.
In Mandi Gobindgarh, the daily index for ingot remained unchanged at Rs29,800/mt ($399.65/mt) ex-works.