- Price volatility, heavy rains prompt need-based buying
- Manufacturers face pressure from rising inventories
India’s induction furnace (IF) steel market witnessed subdued activity today, with mills reducing offers by INR 50-500/tonne (t) d-o-d.
Sponge iron offers dropped by INR 100-300/t d-o-d, with the steepest fall of INR 300/t seen in Jharsuguda. However, in Durgapur market prices increased by INR 200/t.
Billet tags declined by INR 50-500/t d-o-d, with the sharpest fall of INR 500/t witnessed in the Mumbai market. However, in Chennai, prices increased by INR 200/t.
Rebar (Fe 500) tags moved down by INR 100-300/t d-o-d. In Raipur, Raigarh, Ahmedabad, Mumbai, and Durgapur, prices dropped by INR 300/t.
Today, the spot market remained subdued. Purchases were largely confined to urgent needs, driven by volatility in raw material prices, particularly sponge iron and billet, and heavy rains in several regions. Manufacturers faced selling pressure amid dull demand and gradually increasing inventories. Sellers also adjusted trade discounts depending on the bookings received and payment terms.
Given the current scenario, market prices are likely to remain under pressure in the near term unless there is a revival in demand or stabilisation in raw material costs.
The conversion spread from sponge iron (PDRI) to billets for the standalone induction furnaces in the Raipur cluster was assessed at INR 13,650/t.
Click here for brand-wise rebar details
BigMint’s price assessment (region-wise)
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