- Volatile raw material prices lead to need-based buying
- Dull demand, rising inventories pressure producers
India’s induction furnace (IF) steel market witnessed subdued activity today, with mills reducing offers by INR 100-400/tonne (t) d-o-d.
Sponge iron offers dropped by INR 100-150/t d-o-d, except in the Chennai market, where prices increased by INR 200/t.
Billet tags decreased by INR 100-400/t d-o-d, with the steepest fall of INR 400/t seen in the Ahmedabad market.
Rebar (Fe 500) tags moved down by INR 100-300/t d-o-d across regions, except in the Mumbai market, where prices rose by INR 100/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 billets. Manufacturers faced selling pressure amid dull demand and gradually increasing inventories. Consequently, sellers increased trade discounts depending on booking 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 12,500/t.
Click here for brand-wise rebar details
BigMint’s price assessment (region-wise)
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