The daily Davis Index for rebar Monday dropped by Rs800/mt ($10.52/mt) from Friday and settled at Rs31,700/mt ($416.73/mt) ex-works Mumbai amid lower trades due to slowdown in construction activities. Most steel mills are still operating at around 50pc capacity in line with weak demand.
Labour shortage is another challenge faced by steel mills, which is likely to ease a bit this week. Mills are, however, not keen to increase the production in the near term as demand from the construction sector is yet to pick up. Mills are focusing on liquidating older inventory ahead of the monsoon season.
The daily index for billet remained flat at Rs27,100/mt ex-works Mumbai.
In Raipur, the daily Davis Index for rebar fell by Rs400/mt from Friday to settle at Rs31,600/mt ex-works amid weak demand and decline in ingot and billet prices. The daily index for billet dipped by Rs600/mt and settled at Rs26,500/mt ex-works Raipur owing to an increase in the supply of billet. Pellet sponge iron prices were at Rs14,800-900/mt ex-works Raipur, unchanged from Friday.
In Mandi Gobindgarh, the daily index for ingot declined by Rs250/mt($3.28) to Rs30,000/mt ($394.73) ex-works due to a similar fall in scrap prices.