The Indian induction furnace (IF) steel sector continued to be soft as prices ticked down in most regions, in part due to cautious market sentiments and elevated inventory. Sponge iron prices decreased ₹100–250/t on a day-on-day basis in various regions, like in Durgapur, while Raipur increased modestly by ₹50/t. As for the billets, prices decreased ₹50–200/t with the largest drop of the day occurring in Durgapur, Ramgarh, Chennai, and Ahmedabad, while Mandi managed to tick up ₹50/t. Pricing for rebars (Fe 500) dropped ₹100–200/t with Mandi decreasing the most, down ₹200/t.

The overall drop in pricing is largely attributed to weak demand, as buyers are unwilling to make bulk purchases with direction still in doubt. Mills also saw pressure on inventory for long steel at their finished good capacity, and the lifting of previous bookings has slowed further, informing leniency toward pricing.

Outlook:

With sentiment remaining weak and inventories elevated, prices are expected to remain volatile in the near term. However, until demand firms and inventories begin to normalize, price levels are not expected to rise.