Indian DRI, billet, rebar update - 4 Sep

• Limited raw material availability supports prices
  
  
• Buying activity improves, despite regional variations
  
  

India's induction furnace (IF) steel market witnessed moderate trading today, with mills hiking offers by INR 100-500/tonne (t) d-o-d.

Sponge iron offers increased by INR 200-500/t d-o-d. Prices rose the steepest, by INR 500/t, in Raigarh.

Billet tags climbed up by INR 200-500/t d-o-d, with the highest rise of INR 500/t in Hyderabad.

Rebar (Fe 500) prices increased by INR 100-500/t d-o-d, and the sharpest hike of INR 500/t seen in Hyderabad.

Today, there was an improvement in buying activity, although this varied across regions.The market witnessed positive price movements after a couple of days, and buyers showed active interest in procuring material. Prices remained supported due to tight availability in the raw material segments in a few regions. However, the finished steel segment continued to witness inventory pressure, and as per the current scenario, prices are expected to remain range-bound in the near term.

The conversion spread from sponge iron (PDRI) to billets for standalone induction furnaces in the Raipur cluster was assessed at INR 13,300/t.

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BigMint's price assessment (region-wise)