Longs were significantly aided by a spurt in demand and rise in raw material prices, especially in the induction furnace (IF) space. Prices of IF-grade rebar increased by around INR 1,000-3,900/t ($12-47/t) across regions amid improved demand and cost push from raw materials like billets and sponge iron. The improved demand for IF rebars can be attributed to two factors –
1) pre-election buying as the polls will extend from 19 April till 1 June, in seven phases. Post-which, the monsoons will set in. Thus, buyers have become somewhat proactive at this juncture.
2) A certain of panic buying took place as buyers feared prices may rise further.