The brief spurt in raw material and steel prices witnessed over the last 3 days in India's secondary sector steel market, upon sentiments rather by increased demand, sputtered on weekend removing hopes of recovery in the last leg of the financial year
The price level of input material, as well as finished, had made rally over the last 3 days unexpectedly. The rally was primarily seen as firming up domestic sentiments on the back of bottoming out of iron ore and scrap levels in the international market.
Sponge iron prices declined at all major locations by INR 100 to INR 200 per tonne due to oversupply and weakening sentiment in the finished market.
Scrap price levels remained firm though since IF's indulged in stock replenishment in anticipation of further price increase. However, the price levels at Alang for ship breaking and plate cutting scrap dipped.
Pencil ingot price levels corrected at most important locations since there was no significant buying of finished. The rally witnessed in the last couple of days was purely speculative trying to give the market break but not supported by demand.
Rebar market remained quiet with corrections at select locations. Structural steel price though lost at Ahmedabad, Indore and Kolkata.