In Central India, Sponge iron prices remain stable owing to high production of Sponge Pellet. Moderate demand in Finish Steel has kept the buying momentum firm in Semi Finish.

Sponge Iron
Despite weak buying sentiments, manufacturers based in Bellary (Karnataka) region continued to increase Sponge iron prices.

However, in other markets, Sponge iron offers are standing at same levels i.e. INR 18,400-20,400/MT since last week. In Raipur, low Sponge iron and high Sponge Pellet production have increased the price difference between them. Manufacturers want to increase offers as buying for the material (Sponge) has improved after production hike in Ingot. But owing to low Sponge Pellet prices, they are offering the material at INR 20,000-20,200/MT.

Scrap
Imported Scrap price hike by USD 8-10/MT and shortage of domestic Scrap has led to stable Scrap prices. Meanwhile, increased demand at some locations has pushed up Scrap prices by 200-250/MT. However, in Mumbai, offers have improved by INR 500/MT in a week’s time. Similarly, in Jalna, prices have moved up by INR 300/MT. Southern India’s market also shows slight improvement of around INR 250/MT.

MS Ingot
Last week, prices have gain strength in the range of around INR 100-300/MT across the country and demand of material was unchanged. Manufacturers stated that price correction may not be possible because prices of raw material (Iron ore, Scrap) are continuously increasing and production of Sponge iron remains at same level.
Stability of Sponge prices in Central India and continuously rising offers in Bellary & Durgapur is expected to trigger a hike in Ingot/Billet prices in coming days, they further added.

Finish (Re-bar)
It has been in a week that Finish prices are still fluctuating by INR 300-500/MT and volatility continues in market across India. In Mumbai, prices have witnessed a decline of INR 400/MT, whereas in Hyderabad prices increased by INR 500/MT owing to good demand in Re-bar & Structural items.