Indian DRI, billet, rebar update - 28 Oct

• Prices drop on cautious sentiment, inventory pressure
  
  
• Buyers avoid bulk purchases amidmarket uncertainty
  
  

India's induction furnace (IF) steel market witnessed subdued sentiment today, and seen variation in offers by INR 50-250/tonne (t) d-o-d.

Sponge iron offers dropped by INR 100-250/t d-o-d, with the steepest fall of INR 250/t seen in Durgapur. However, prices inched up in Raipur region by INR 50/t.

Billet tags decreased by INR 50-200/t d-o-d, with the highest drop of INR 200/t in Durgapur, Ramgarh, Chennai and Ahmedabad regions. Although, prices were slight up in Mandi market by INR 50/t.

Rebar (Fe 500) tags moved down by INR 100-200/t d-o-d. Prices dropped the highest in Mandi by INR 200/t.

Today, limited buying was seen across markets. Buyers remained cautious about bulk procurement of raw materials due to uncertainty in market direction. Manufacturers pointed to huge inventories piled up at mills, especially of finished long steel, and the slow lifting of previous bookings dragged down offers. Prices are likely to remain volatile in the near term.

The conversion spread from sponge iron (PDRI) to billets for the standalone induction furnaces in the Raipur cluster was assessed at INR 12,350/t.

Click here for brand-wise rebar details

BigMint's price assessment (region-wise)