Semi finish price may remain under pressure due to low finish demand as construction activity and transporting is hit by the ongoing monsoon. North India continues to buy MS Ingot/Billet from East India at a discount price of Rs 300-400/MT as compared with the local market. The week's highlights are –
1) Sponge Iron prices will remain range bound due to limited production and firm demand from North India. Last week sponge prices were down by Rs 400-500 W-o-W
2) Scrap shortage continues to remain in North India that will hold prices. Bhavnagar scrap prices and demand remained firm last week with no major change.
3) Re bar prices are hit by negative market sentiments and on hold demand for end user due to lower construction activity pan India. Last week 12MM Re-bar prices fell by Rs 1500-1800/MT. Bearish price trend will remain this week also.
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