As of now, semi finish and finished long steel sales are sluggish in the domestic market and it is anticipated to remain bearish in near-term. In addition, prices are declining continuously on the grounds of slipping Iron ore prices, fall in Pig iron export and decreasing imported Scrap offers.
Key Highlights
- Pig iron prices in CIS nations declined by USD 15/MT (INR 900/MT). While, in the domestic market, it fell by INR 500-1,000/MT M-o-M
- Global Scrap offers down by USD 15-20/MT (INR 900-1,200/MT) M-o-M. In same line, ship breaking Scrap prices in the domestic market, Alang (Gujarat) slumped by INR 1,200/MT
- Domestic Iron Pellets market is witnessing continuous downfall movement. Currently, Iron ore prices in Odisha have declined by INR 600-650/MT. While, Pellet prices have corrected by upto INR 400/MT W-o-W
Semi Finish Prices likely to down by INR 500-700/MT – Manufacturers
Sponge and MS Billet makers based in Odisha, Karnataka & Chhattisgarh shared, “Demand from West & North India was good in last week and dispatches of material had almost completed. Viewing at market sentiments and declining prices, we have to take booking at lower rates.”
MS Billet & Rebar prices across India have reduced by upto INR 1,000/MT. While, Sponge prices have marginally declined by INR 200-400/MT in a week’s time.
MS Billet Prices touch 1-year low level; Manufacturers looking for Production Cut
MS Billet prices have touched 1-year low level. In Rourkela, the material is offered at INR 26,500/MT, which is the lowest offer in India.
Long steel (Rebar) manufacturers based in Central & Western India shared, “Due to low profit margins and sales, we have already reduced our production by 30-40% and now we are planing to further cut our production.”
Similarly, Structure Steel manufacturers based in West Bengal & Chhattisgarh stated that Structural steel stock has increased, that has created sales pressure to cut the production to meet the demand & Supply gap.
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