Indian Rebar Trade Prices Fall on Weak Demand

Rebar demand in Indian domestic market continues to slow down amid less buying inquires across major markets and poor lifting. This urged industrialists to adjust the price range as per market requirement and offers have reduced by INR 400-600/MT (USD 6-9) in a week's duration.

However on daily basis, slight improvement has been registered in particular locations as prices inched up due to strengthening raw material (Sponge & Billet) prices but trade volumes remained low. Meanwhile the trade participants are assuming that there are less chances to get any major changes in near term as prices already fell sharply more than expectations.

As per assessment, the latest rebar offers by mid sized mills is hovering at INR 30,700-30,900/MT ex-Raipur, INR 31,400-31,600/MT ex-Durgapur, INR 32,200-32,400/MT ex-Jalna & INR 32,300-32,500/MT ex-Hyderabad, Fe500, excluding 18% GST & size 12-25mm.

Following limited inquiries, the large scale mills recent reduced offers by around INR 1,000/MT (USD 14) in the form of trade discounts & base price as well, as reported by trade sources.

In latest assessment the rebar offers of 12 mm rebar by large scale mills stood at around INR 38,500-800/MT ex-Mumbai (stock yard – retail segment), excluding 18% GST & grade Fe 550D.

Whereas, for project offers may vary by around INR 1,000-1,500/MT depending upon project as well procurement quantity and current it’s registered around INR 36,500-37,000/MT & few location of east region observed around INR 35,000-35,500/MT.

During past week, recent development (MOU) has been notified through NHAI which came up with NIIF (National Investment & Infrastructure Fund) to ease liquidity issue i.e. to invest equity in road projects particularly green field which will be implement by NHAI.

Trade Updates (Rebar – 12 mm of mid sized mills)

-- Rathi Steels based in North region current offering around INR 35,600/MT (ex-Delhi).

-- Raipur based - SPEED TMT is offering at INR 31,100/MT (up by INR 300/MT).

-- Real Ispat (GK TMT) has unchanged their offers at INR 33,300/MT.

-- Raigarh based Anjani Steels Ltd. (Radhe TMT) is offering at INR 30,800/MT (up by INR 200/MT).

-- Raigarh based Scan Group branding (Shrishti TMT) is offering at INR 31,300/MT (up by INR 500/MT).

-- Gujarat based Shreeyam Power & Steel Industries Ltd. (National TMT) is offering at INR 33,800/MT FoR (up by INR 100/MT).

-- Jalna based SRJ Peety Steels Pvt Ltd (Shree Om) is offering at INR 32,600/MT (down by INR 100/MT).

-- South region based – VRKP Steel Industry Pvt Ltd – (VRKP TMT) is offering at INR 33,700/MT (up by INR 100/MT).

-- Chennai based Sakthi Ferro Alloys India Pvt. Ltd. (SSI TMT) has unchanged their offers at INR 34,500/MT.

Note – Prices mentioned above are ex-work, excluding GST & changes are placed on day basis. Prices are subject to reconfirmation.