- Buyers restrict purchases to immediate needs
- Slow lifting of previously booked material pressures sellers
India’s induction furnace (IF) steel prices declined d-o-d on 2 February amid subdued steel sales.
Sponge iron offers decreased in the range of INR 50-200/t d-o-d, with the sharpest drop of INR 200/t in Raipur and Jharsuguda, where prices settled at INR 25,500/t and INR 24,300/t respectively.
Billet prices fluctuated by INR 50-500/t d-o-d across locations, with the steepest increase of INR 200/t in Durgapur, where prices settled at INR 40,700/t. However, in Jalna, prices fell by INR 500/t to INR 43,000/t.
Rebar (Fe 500) prices fell by INR 100-300/t d-o-d. Prices dropped the sharpest in Ahmedabad, by INR 300/t to INR 48,400/t.
Today, enquiries in the spot market remained subdued, with buyers largely restricting purchases to need-based requirements, reflecting cautious market sentiment. Overall activity was weak across the semi-finished and finished steel segments. Additionally, poor lifting of previously booked material weighed on trade activity, particularly in the finished steel segment. These factors compelled sellers to either reduce spot offers or offer trade discounts to liquidate inventories.
Given the current scenario, market activity is expected to remain slow further rest depends on demand-supply balance.
The conversion spread from sponge iron (PDRI) to billets for the standalone induction furnaces in the Raipur cluster was assessed at INR 15,150/t.
Click here for brand-wise rebar details
BigMint’s price assessment (region-wise)
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