Southern Steel Markets Witness Stability with Minimal Price Adjustments

Steel markets in southern India, including Chennai, Hyderabad, and Bellary, experienced a day of mixed trends on 4 December 2024. While minor price fluctuations were noted, overall activity remained subdued as buying momentum stayed limited.

In Chennai, the market remained mostly stable with slight positive adjustments. Rebar prices held steady at INR 46,000/tonne (t), reflecting consistent demand from the construction sector. MS billet prices edged up by INR 100/t to INR 41,300/t, indicating mild demand recovery in the semi-finished category. Meanwhile, scrap prices remained unchanged at INR 32,000/t, signaling limited movement in raw material procurement.

The Hyderabad market also displayed a balanced trend. Sponge iron prices held firm at INR 25,800/t, while MS billet prices saw a marginal increase of INR 100/t, now standing at INR 39,800/t. Rebar prices remained steady at INR 43,700/t, with no significant change in market sentiment or buyer activity. This reflects a cautious approach among end-users, primarily due to liquidity concerns and expectations of further price stability.

In Bellary, prices followed a similar trend of marginal adjustments. Sponge iron prices remained unchanged at INR 26,250/t, maintaining their stability for the week. MS billet prices rose slightly by INR 100/t to INR 41,000/t, suggesting steady buying interest from re-rolling mills. Rebar prices continued to trade at INR 46,000/t, highlighting a balanced demand-supply equation in this industrial hub.

Market participants across these regions highlighted restrained buying activity, primarily driven by cautious sentiment amidst moderate inventory levels at mills. While the price increases for some categories suggest a slight uptick in demand, overall trading volumes remain limited as buyers await further clarity on market direction. Sellers are closely monitoring market conditions, with mills adjusting offers in line with inventory positions and market feedback.

As the year-end approaches, the southern markets are expected to remain range-bound, with no sharp movements anticipated in the short term. However, any changes in raw material costs or sudden shifts in demand could influence price trends.