The slide in the BF segment was partly a knee-jerk reaction to the dullness prevailing in the induction furnace (IF) rebar space which commands 65-70% of the market. Prices here remained flat w-o-w at INR 48,100/t ($579/t). Here too, lacklustre buying amid rising inventories did not allow mills any space to raise offers. With the BF-route prices sliding further, the average spread with induction furnace (IF) material has normalized to INR 3,500-4,000/t (42-48/t). However, the worrisome aspect here is that the spread normalization has happened at lower price points.
