Closing of the month and good buying sentiment of Re-bar in Mandi Gobindgarh (North) have improved the sentiments by INR 300-400/MT in major markets. However, trader said that the sales volume remains stagnant as buyer are cautious in Mumbai, Raipur, Durgapur & Rourkela markets.
Sponge prices remain under pressure with increasing Pellet availability and falling Sponge pellet prices along with low demand from Ingot/Billet buyers. The conversion gap from Sponge to Ingot/Billet is further increased by INR 200-400/MT mostly in Raipur, Durgapur & Rourkela.
Manufacturers believe that this price rally is due to improve sentiment as primary manufacturer increased price by INR 700-1,000/MT. However, actual demand of Finish Long is missing in the market. They also stated that Semi Finish trade volume will remain low owing to payment shortage & upcoming elections.
- [su_pullquote]North India: Viability to purchase MS Billet from East & Central India (Raipur, Rourkela & Durgapur) improved[/su_pullquote]Raipur selling Billet at around INR 30,400/MT to Mandi Gobindgarh on Ex-Raipur basis (Freight from Raipur to Mandi at INR 2,800-2,900/MT)
- Rourkela offers Billet to Mandi at around INR 29,800/MT on Ex- Rourkela basis (Freight Rourkela to Mandi at INR 3,400/MT)
- Durgapur continues sales of Billet to Mandi at around INR 30,500/MT on Ex-Durgapur basis (Freight from Durgapur to Mandi at INR 2,600/MT)
- Local manufacturers based on Mandi offer Ingot at INR 34,650/MT on regular payment
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