Ingot and billet prices trended downwards in major Indian secondary steel markets owing to a significant drop in local sponge iron and pig iron prices.
The daily Davis Index for billet in Raipur fell by Rs1,000/mt ($13/mt) to Rs42,200/mt ($569/mt) ex-works on Monday from Friday prompted by a substantial drop in sponge prices. Despite the drop in billet prices, trades were minimal.
International iron ore prices dipped by approximately 40pc from the peak in May 2021 which was reflected in local sponge iron markets. Domestic iron ore pellet prices also witnessed a significant drop of Rs1,500/mt in the previous week and on Monday traded at Rs12,500/mt ($168/mt) in Raipur from Rs14,000/mt ($189/mt) at the beginning of the previous week.
Meanwhile, bids for pig iron fell in an auction conducted by the SAIL-Bhilai unit on Aug 23. Bids were heard at Rs38,350-38,600/mt ($517-520/mt) ex-works Bhilai for 6,000mt.
Pellet sponge prices dropped by Rs1,500/mt ($20/mt) to Rs30,200/mt ($407/mt) ex-works Raipur on Monday from Friday. Prices dropped by Rs700/mt on Saturday and by Rs800/mt on Monday. The daily index for rebar was down by Rs500/mt to Rs45,000/mt ($606/mt) ex-works Raipur amid sluggish demand.
In Mumbai, the daily index for billet declined by Rs1,100/mt to Rs43,700/mt followed by a decline in local scrap prices. Some billet deals were reported at Rs43,700/mt ex-works. The index for rebar fell by Rs500/mt to Rs49,500/mt ex-works.
In Mandi Gobindgarh, the daily index for ingot was down by Rs1,000/mt to Rs44,800/mt ex-works in line with a drop in local scrap prices.