The IF Grade Rebar experienced a mixed trend this week, marked by price volatility and improved market sentiments. At the beginning of the week, the market activity was subdued with limited buying activity and prices facing downward pressure. The Rebar prices dropped by INR 300/tonne, while billets saw a marginal rise in price. Mills provided trade discounts to boost demand, but still, the buying activities were limited. 

By mid-week, market sentiment showed signs of recovery, with moderate buying activities. This led to the prices for sponge iron and billets rising modestly in key regions like Ahmedabad and Jalna, which were also driven by earlier raw material hikes. 

As per a few traders, there was some improvement in finished steel bookings; however, regional disparities remained. 

Towards the end of the week, demand picked up, especially for semi-finished and finished steel products, leading to significant price increases. The billet prices rose by up to INR 800/tonne and rebar by INR 400/tonne in a few key markets. This rebound in prices is supported by a rise in sponge iron prices, notably in central and eastern India. 

Throughout the week, the conversion spread from sponge iron to billets in the Raipur cluster remained steady at INR 12,800–12,850/tonne. 

Opinion: 

Thus, it can be anticipated that the market is expected to remain firm or rangebound in the near term, supported by raw material costs and improving spot demand, and the regional price variation may continue.