- Trade activity slows down at elevated price levels
- Prices to remain supported on sellers’ strong order books
India’s induction furnace (IF) steel prices showed mixed trends d-o-d on 23 December, driven by a slowdown in trade momentum.
Sponge iron offers fluctuated by INR 50-200/tonne (t) d-o-d. The steepest rise of INR 200/t was observed in the Jharsuguda market, where prices stood at INR 22,200/t. Prices in Raipur fell by INR 100/t to INR 23,300/t.
Billet prices varied by INR 100-500/t d-o-d across locations. The sharpest increase of INR 500/t was recorded in Ahmedabad, where prices were at INR 41,500/t. Prices dropped by INR 200/t in Raipur to INR 37,700/t.
Rebar (Fe 500) prices moved up by INR 200-400/t d-o-d. Prices increased the highest in Rourkela and Ahmedabad, by INR 400/t to INR 40,700/t and INR 46,400/t respectively.
Lower trading volumes were observed today in both the finished steel and semi-finished segments, reflecting cautious buying behaviour amid elevated prices. Trading activity remained largely need-based, as buyers had already procured material over the past 2-3 days. Consequently, buyers shifted to a wait-and-watch mode, refraining from making aggressive purchases. Additionally, the lack of fresh bookings in the finished steel segment weighed on overall market activity.
However, prices are expected to remain supported this week, close to current levels, as sellers have secured adequate bookings. Reduced inventory pressure is likely to make sellers resistant to decreasing prices significantly.
The conversion spread from sponge iron (PDRI) to billets for standalone induction furnaces in the Raipur cluster was assessed at INR 14,400/t.
Click here for brand-wise rebar details
BigMint’s price assessment (region-wise)
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