India’s induction furnace steel market experienced subdued buying interest on January 19th, with limited spot market activity despite price increases across various regions. Sponge iron, billet, and rebar prices have moved higher, led by a sharp increase in Chennai, representing strong cost pressure. However, billet prices faced regional parity as across major regions, prices increased, but in Raipu,r the prices had dropped.  It had been seen that even the buyers refrained from bulk purchases, and demand didn’t gain any momentum, along with it many market participants are adopting a wait-and-watch approach, which has resulted in thin trading volumes. 

Rebar prices have increased in the range of ₹200-2600/t  d-o-d basis. The highest hike was seen in Chennai by ₹2600/ t to ₹47,300/t, and prices ar raipur was assessed at ₹48700/ t, increased by ₹600/ t on a d-o-d basis. 

On the other side, the Raipur market has witnessed a decline in billet prices, indicating relatively weaker regional demand.

Outlook:

It is expected that demand will remain cautious, and with fresh booking orders, prices are likely to remain supported in the near term.