The daily Davis Index for rebar Wednesday fell by Rs800/mt ($10.57/mt) and settled at Rs34,200/mt ex-works Raipur amid significant fall in finished steel demand both from retailers as well as construction projects. Secondary steelmakers expressed concern about such as steep drop and worried that the fall in rebar prices would impact in their margins.
The daily index for billet fell by Rs250/mt and settled at Rs29,350/mt ex-works Raipur. Unlike rebar billet prices were supported by a continued shortage of billet in the domestic market. Pellet sponge iron prices were at around Rs16,000-16,100mt ex-works Raipur on Wednesday, down by Rs100-200/mt.
Davis Index heard that a steel mill received an export order of 20,000mt billet from the Philippines this week. The deal was priced at $400-405/mt fob India, which is up by $15-20/mt from the previous month.
The daily Davis Index for rebar in Mumbai remained unchanged at Rs34,300/mt ex-works with limited trades. The index for billet dipped by Rs50/mt to Rs29,300/mt ex-works Mumbai.
In Mandi Gobindgarh, the daily index for ingot was down by Rs350/mt at Rs31,550/mt ex-works on a similar decrease in ferrous scrap prices.