Domestic Rebar prices experienced mixed trends this week amid subdued demand influenced by the festive season and monsoon effects, leading to fluctuations in mills' offers by ₹50-200 per ton d-o-d. The rebar prices dropped by ₹300 on a w-o-w basis, due to subdued trade activity, and buyers' limited purchases are pressuring the prices.

Sponge iron (DRI) offers have mostly decreased by ₹50-150 per ton, except in Ramgarh, where prices increased by ₹100 per ton. Billet prices dropped by ₹50-200 per ton across most locations, except in Mumbai and Jalna, where prices edged up by ₹100 per ton. The prices of DRI and Billet have declined by ₹450-500 per ton, respectively.

The decline in thermal coal prices has reduced sponge iron production costs, putting pressure on raw material prices. Moreover, overall price softness and subdued trade activity, production in both sponge iron and billets has continued growing steadily, supporting a cautious but stable market, and is likely to continue.

Outlook:

The festive season and extended monsoon season are affecting buying sentiment, with expectations for prices to remain range-bound in the short term.