Chennai, Hyderabad, Bellary: Mixed Movements in Steel Prices

On November 19, 2024, the southern steel markets observed mixed trends, with billet and rebar prices showing slight declines across Chennai, Hyderabad, and Bellary.

Chennai Market:

The HMS (80:20) scrap price remained unchanged at INR 32,400/t, showcasing stability amidst other market fluctuations. However, MS billet prices dropped marginally by INR 50/t, settling at INR 42,000/t, while rebar (Fe 500) prices witnessed a sharper decline of INR 300/t, closing at INR 46,500/t.

Hyderabad Market:

Hyderabad’s steel market echoed broader trends, with PDRI sponge iron prices experiencing a modest decline of INR 100/t, standing at INR 26,600/t. Meanwhile, billet prices fell by INR 100/t to reach INR 40,000/t, while rebar prices dropped by INR 200/t, finalizing at INR 44,500/t.

Bellary Market:

The CDRI sponge iron market in Bellary saw no change, remaining steady at INR 26,800/t, while PDRI sponge iron prices eased slightly by INR 50/t, closing at INR 25,700/t. Similarly, rebar prices dropped by INR 100/t, reaching INR 45,000/t.

Market Outlook:

While demand remained moderate in these regions, fluctuating scrap availability and subdued activity in the induction furnace (IF) steel segment impacted pricing dynamics. Stakeholders expect prices to stabilize or remain range-bound in the near term, as markets adjust to supply-demand imbalances.

Key Insights:

• Chennai: Scrap stable; rebar prices drop significantly.
• Hyderabad: Sponge and billet prices decline.
• Bellary: Sponge stable; rebar softens slightly.