India’s induction furnace steel prices have moved up marginally as the sellers had hiked the prices amid steady bookings last week. Sponge iron prices have risen by ₹50-550/t d-o-d basis, with Raipur witnessing the steepest increase of ₹550/t to ₹23,400/t. Billet prices have risen by ₹300-₹1000/t across markets, led by a ₹1000/t rise in Hyderabad to ₹39,500/t. Rebar prices continue to trend higher today with increases ranging from ₹200–₹800/t depending on geographic location, with Raigarh's location having the largest increase at ₹800/t to ₹40,400/t. Overall, the combination of improved market demand and strong buying interest has contributed positively to the strong level of trade activity in the market today, which prompted steel mills to raise their offers.

Outlook:

With continued strong buyer activity coupled with steady rates of booked steel production, steel prices from international markets are likely to remain strong in the short term. Overall trends related to the demand/supply relationship for steel indicate that overall market conditions are currently not expected to provide any significant negative price pressure this week. The current conversion margin (from sponge iron/PDRI through to Billets) for the Raipur cluster operated by standalone induction furnaces has been confirmed at ₹14,500/t which indicates that producers have protected margins going forward.