India’s Induction furnace (IF) steel market has witnessed a d-o-d price correction across raw material and finished products. Sponge iron prices have seen a downtrend by ₹50-200 per tonne with the steepest fall seen in Raipur and Jharsuguda. The price at Raipur was assessed at ₹25,500 per tonne down by ₹200 per tonne on d-o-d basis. Billet prices have seen a mixed trend, as it had been fluctuating within a wide band of ₹50-500 per tonne. Durgapur had seen a modest rise, while Jalna recorded a sharp decline and price at Raipur remained stable. Rebar (Fe 500) decreased by ₹100–300/t, due mainly to a significant fall in Ahmedabad. The Raipur price has decreased slightly (by ₹100 per ton), to ₹43900. The reasons for this reduction were mainly due to little or no spot market activity, poor demand, with buyers buying only on an as-required basis; and also, from the lack of good pick-up on previous orders, which made trade less attractive, particularly with finished steel, forcing sellers to lower their spot prices or give discounts to clear inventory. There was also less participation in the market for both semi-finished and finished steel.

Outlook:

Looking ahead, market activity is expected to stay sluggish in the near term, with any price movement hinging on an improvement in demand and a balance between supply and inventory levels.