Rebar prices stayed flat in Mumbai due to elevated scrap prices. But ingot and billet prices slipped in Raipur and Mandi Gobingarh markets.
The daily Davis Index for rebar in Mumbai remained unchanged for the third straight day and settled at Rs47,900/mt ($653/mt) ex-works on Wednesday. The daily index for billet was flat at Rs43,500/mt ($593/mt) ex-works.
Steel mills in Mumbai kept rebar prices firm as they faced margin squeeze on elevated imported scrap prices. At the same time, demand is moderate since the starting of the month due to arrival of monsoon season which has slowed construction activities.
The spread between billet and rebar in Mumbai was Rs4,400/mt ($60/mt) on Wednesday, which was Rs6,000/mt ($81/mt) around May-end.
Some real estate developers in Mumbai shared that labourer’s mobility had increased in the first fifteen days of June at some of the construction sites. However, activities are unlikely to pick-up due to monsoon season and lack of funds. Construction projects are expected to gain momentum in September.
In Raipur, the daily index for billet decreased by Rs400/mt at Rs42,300/mt ex-works due to weak demand.
Offers for pellet sponge stayed firm at Rs31,000/mt ex-works, with limited deals reported on need basis only. The daily index for rebar was unchanged at Rs46,000/mt ex-works Raipur with moderate rebar sales.
In Mandi Gobindgarh, the daily index for ingot was down by Rs700/mt to Rs45,400/mt ex-works, in sync with the fall in local scrap prices.
($1= Rs73.31)