There seems to be no end to the miseries of India’s secondary steel sector as prices of input materials, semis and rebar continuing to weaken with every passing day

Sponge iron price levels remain descendant owing to oversupply and price reduction by major miners of iron ore recently. Sponge iron prices reduced by INR 100 at Bellay, INR 150 at Raipur and INR 100 at Rourkela

Steel scrap price rallied at Kandla, Kolkata and Mumbai by token amount of INR 50-100 per tonne while declining by INR 100 at Mandi.

Pencil ingot prices recovered by INR 300 at Mumbai and INR 50 at Raigarh while declining by INR 200 at Mandi

Rebar prices gained INR 200 at Delhi, INR 170 at Kolkata and INR 90 at Ludhiana

A token market correction at few locations, after mauling over the past week wherein price levels plummeted by upto INR 800-1000 per tonne, seems speculative as there is hardly any boost in demand from projects.

In all likelihood, this short rally is likely to fizzle away soon.