- Slow trade, high inventories prompt price cuts
- Elevated Finished steel inventories stand at 10-15 days
India’s induction furnace (IF) steel market experienced dull trade activity today. Offers floated by mills fluctuated in the range of INR 50-200/tonne (t) d-o-d.
Sponge iron offers declined by INR 50-150/t d-o-d. Prices decreased the steepest in Durgapur, by INR 150/t.
Billet tags varied by INR 100-200/t d-o-d across regions.
Rebar (Fe 500) prices were down by INR 100-200/t d-o-d, with the sharpest decline of INR 200/t seen in Raipur, Chennai, Mandi, and Ahmedabad.
Overall, trading activities remained subdued today as well. Buyers largely restricted purchases to immediate needs and avoided bulk bookings. Meanwhile, sellers were burdened with elevated inventories of around 10-15 days, specifically in finished steel, though this figure varied across regions. Excess inventories, stemming from sluggish sales, compelled producers to reduce prices further. Given the current market conditions, prices are likely to remain volatile in the near term.
The conversion spread from sponge iron (PDRI) to billets for standalone induction furnaces in the Raipur cluster was assessed at INR 13,150/t.
Click here for brand-wise rebar details
BigMint’s price assessment (region-wise)
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