South India: Steel prices fall on soft buying interest

Sponge iron PDRI (FeM 80%) prices in Bellary were assessed by SteelMint at INR 29,400/tonne (t) exw (-INR 1,400/t), and CDRI at INR 30,400/t exw (-INR 1,300/t) w-o-w. Total sponge iron trade volumes concluded this week (PDRI and CDRI combined) was 16,400 t.

Steel prices fell due to lack of buying interest from the market participants and slower movement of finished steel makes them in a wait and watch condition.

Highlights

• • As billet prices decreased across markets, sellers lowered their offerings for billets and rebar to match demand. Due to slow demand and increased buying activity in the billet markets from Raipur to Hyderabad, prices dropped. In the Hyderabad region prices dropped by INR 1,000/t w-o-w.
    
    
  • In the finished long steel segment, current quotes for rebar fell by INR 1,000/t w-o-w to INR 49,500-51,000/t exw (12-25mm, IF route, Fe 500, IS 1786) in Hyderabad.
    
    
  • Raw pellets (Fe 63%) offers are now hovering around INR 8,600-8,900/t exw in Karnataka.
    
    
  • This week few deals in non-coking coal RB3 (4800 NAR, South African origin) were concluded between INR 12,600 - INR 12,800/t at Mangalore port.
    
    
  • Due to the cyclone and heavy rain, trade operations in the southern Chennai market were disrupted. Participants in the market reported that under cutting had begun at mills as a result of sales pressure caused by the slow movement of finished steels, notably rebar.