The Davis Index for rebar in Raipur remained unchanged on Tuesday at Rs35,200/mt (466.84/mt) ex-works.
A majority of the mills in Raipur have ramped up capacity utilisation to 80pc-85pc over the last two weeks despite subdued demand.
Oversupply of rebar relative to weak domestic demand could hurt prices. Mainly, since mills have ramped up operations but downstream activities like construction could remain slow once the monsoons begin. Traders stayed away from the market awaiting a clarity in price direction for finished steel. The index for billets fell by Rs200/mt ($2.65/mt) and settled at Rs29,100/mt ($384.92/mt) ex-works Raipur, due to a fall in pellet sponge prices. Pellet sponge iron was priced at Rs16,200/mt ex-works Raipur, down by 200-300/mt.
In Mumbai, the daily Davis Index for rebar remained unchanged at Rs34,300/mt (454.90/mt) ex-works with limited trades reported.
The daily index for billet fell by Rs150/mt to Rs29,550/mt (391.90/mt) ex-works Mumbai, on slow demand from the local market.
Mumbai mills sold billets to buyers in Jalna and Pune at around Rs30,800/mt del mills.
In Mandi Gobindgarh, the daily index for ingot was down by Rs50/mt ($0.66/mt) to Rs31,250/mt ($414.45/mt) ex-works on a similar fall in ferrous scrap prices.