South India: Steel prices slow down w-o-w amid moderate demand

Sponge iron PDRI (FeM 80%) prices in Bellary were assessed by SteelMint at INR 28,700/tonne (t) exw, down by INR 700/t, and CDRI at INR 29,900/t exw (-INR 500/t) w-o-w. Total sponge iron trade volumes concluded this week (PDRI and CDRI combined) were at 31,600 t.

Prices decreased as a result of lower demand for steel among market participants and slower movement of finished steel.

Highlights

• Due to moderate demand for billets, the Hyderabad market remained stable on a weekly basis.
  
  
• In the finished long steel segment, current quotes for rebar fell by INR 500/t w-o-w to INR 50,000-50,500/t exw (12-25mm, IF route, Fe 500, IS 1786) in Hyderabad.
  
  
• Raw pellets (Fe 63%) offers are now hovering at around INR 8,400-8,700/t exw in Karnataka.
  
  
• This week, a few deals in non-coking coal RB3 (4800 NAR, South African origin) were concluded between INR 12,500 - INR 12,600/t at Mangalore Port, against offers of INR 12,700 - 12,900/t ex-port.
  
  
• In southern India-based Chennai market, finished steel movement is still weak due to which there was lower demand for semi-finished steel. Further, due to the arrival of a few scrap bulk vessels in the local market, raw material (melting scrap) bids were declined by the mills.