Steel Prices Surge in Chennai, Hyderabad, and Bellary Amid Market Volatility

On December 6, 2024, steel prices in South India saw a notable increase. Mills raised their offers for semi-finished and finished long products in key cities like Chennai, Hyderabad, and Bellary. While prices rose, demand remained slow. Market conditions are volatile, making traders cautious.

Price Increases in Chennai, Hyderabad, and Bellary

In Chennai, rebar prices jumped by ₹200 per tonne. This increase was driven by higher production costs, even though demand for rebar remained sluggish. Billet prices in Hyderabad also rose by ₹150 per tonne. However, demand for billets stayed weak, especially for lower-grade products, as buyers hesitated due to unpredictable market trends.

Sponge Iron Prices Surge in Bellary

Bellary experienced the most significant increase. Sponge iron prices surged by ₹300 per tonne, driven by limited supply and a slight increase in local demand. While this uptick was significant, overall demand for sponge iron remained subdued, as many traders were cautious about buying.

Market Sentiment and Trading Activity

Despite the price hikes, overall trading activity in the region was moderate. Demand for both semi-finished and finished long products remained slow. Traders and buyers are still uncertain about the direction of the market. While some mills raised offers, many buyers chose to stay on the sidelines, waiting for clearer price trends.

A Volatile Market Outlook

Steel prices are rising in South India, but the market remains unpredictable. Traders are cautious as demand struggles to keep pace with price increases. The outlook for the coming weeks is unclear, with market volatility likely to continue.