- Ample market supply, liquidity crunch prompt price cuts
- Prices may stay volatile in near term amid muted demand
India’s induction furnace (IF) steel market witnessed dull sentiments today, and mills’ offers largely declined by INR 50-300/tonne (t) d-o-d.
Sponge iron offers decreased by INR 50-300/t d-o-d, with a steepest fall of INR 300/t in Hyderabad and Bellary market.
Billet tags dropped by INR 100-200/t d-o-d, with the highest fall of INR 200/t in the Chennai and Mumbai markets. However, prices increased by INR 200/t in Raigarh.
Rebar (Fe 500) tags moved down by INR 100-300/t across regions, with the sharpest fall of INR 300/t seen in the Mumbai and Jalna market. However, prices increased by INR 200/t in the Raigarh market.
Today, limited buying activities were observed in the spot market, specifically in the second half of the trading session. Prices were down amid dull demand for semi-finished and finished steel. Heavy sales pressure, owing to huge inventories and a liquidity crunch, compelled sellers to reduce offers. As per the current scenario, prices may remain volatile in the near term.
The conversion spread from sponge iron (PDRI) to billets for the standalone induction furnaces in the Raipur cluster was assessed at INR 12,450/t.
Click here for brand-wise rebar details
BigMint’s price assessment (region-wise)
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