Ingot and billet prices plunged on Friday due to lack of demand in most Indian secondary markets.
The daily Davis Index for billet in Raipur fell by Rs1,100/mt ($15/mt) and settled at Rs41,100/mt ($565/mt) ex-works on Friday as buyers stayed away amid expectations of a bearish market in the near-term.
Market participants believe that domestic steel demand will remain subdued this month due to the lockdown and weather conditions, and expect pent-up demand in June, before the rainy season reaches its peak.
A state-owned mill recently sold 60,000mt (4Sp grade) billet at $660-680/mt fob India.
Offers for pellet sponge iron dropped by Rs1,000/mt to Rs29,000/mt ex-works on Friday. The daily index for rebar fell by Rs400/mt to Rs46,000/mt ($643/mt) ex-works Raipur following a drop in ingot and billet prices.
In Mumbai, the index for billet fell by Rs400/mt to Rs44,000/mt ex-works followed by a dip in rebar prices. The index for rebar settled at Rs49,700/mt ex-works, down by Rs500/mt.
In Mandi Gobindgarh, the daily index for ingot slipped by Rs1,400/mt to Rs44,000/mt ex-works.