- Prices continue to fall amid heavy selling pressure
- Producers offering substantial discounts to liquidate material
India’s induction furnace (IF) steel market witnessed subdued trading activity today, and mills reduced offers by INR 50-300/tonne (t) d-o-d.
Sponge iron offers decreased by INR 100-250/t d-o-d, with prices dropping INR 250/t in Durgapur market.
Billet offers declined by INR 50-300/t d-o-d, with the steepest drop of INR 300/t in Mumbai.
Rebar (Fe 500) tags dropped by INR 100-200/t d-o-d. Prices declined the most in Mumbai, Rourkela, Chennai, and Mandi markets, by INR 200/t.
The spot market has been experiencing a persistent downward trend over the past few days, driven primarily by heavy selling pressure. This is largely due to subdued demand in the finished goods segment, which has, in turn, limited bulk procurement of raw materials such as sponge iron and billet.
As inventory levels rise at mills, manufacturers are increasingly offering substantial discounts to clear stock. In response to the mounting inventory pressure, producers have begun implementing production cuts. However, these adjustments vary by location, depending on the severity of the stock build-up.
The conversion spread from sponge iron (PDRI) to billets for the standalone induction furnaces in the Raipur cluster was assessed at INR 12,200/t.
Click here for brand-wise rebar details
BigMint’s price assessment (region-wise)
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