Falling Seasonal Demand Weighs On Indian Rebar Market
Mid sized mills in central & western India have cut rebar production on the back of dull domestic demand. Mills have lowered production by 30-40% which lead to fall in inventories. Inventories have comparatively lowered than previous week.
However in remaining markets the mills utilization remained on same line close to 80-90%, SteelMint learned in conversation with mill owners.
In context to rebar demand, it seems that weak demand, liquidity issues, funds allocation for govt projects kept overall market sentiments dull.
As per assessment the latest rebar offers for 10-25mm by mid sized mills hovering at INR 30,300-30,300/MT ex-Raipur, INR 31,700-32,000/MT ex-Jalna, INR 30,800-31,000/MT in Durgapur & INR 34,300-34,500/MT ex-Mandi Gobindgarh. These prices drop by INR 500-700/MT (USD 7-10 ) in a week duration.
What will be large scale mills offers in Aug'19 ?
Sources close to large mill owners assume further drop in offers through the state owned major producers in Aug'19 due to widening rebar price gap between the large & medium/small scale mills. Currently gap is hovering around INR 6,000-6,500/MT particularly in Mumbai and around INR 5,000/MT in Ahmadabad and this should be not more than of INR 4,000-5,000/MT, as per industry sources.
In addition as the private large mills are offering competitive price range in comparison to state owned mill which could be a key concern for further amendment in rebar offers by state owned large scale mills.
Trade Updates (Rebar – 12 mm)
-- Rathi Steels based in North region current offering around INR 34,800/MT (ex-Delhi).
-- Raipur based - SPEED TMT is offering at INR 30,400/MT (up by INR 200/MT).
-- Real Ispat (GK TMT) is offering at INR 33,900/MT (up by INR 200/MT).
-- Raigarh based Scan Group branding (Shrishti TMT) is offering at INR 30,500/MT (up by INR 300/MT).
-- Gujarat based Akshar Ispat Ltd. (Akshat TMT) is offering at INR 33,600/MT FoR.
-- Jalna based Rajuri Steel Pvt. Ltd. (Rajuri TMT) is offering at INR 32,000/MT (down by INR 500/MT)..
-- Jalna based SRJ Peety Steels Pvt Ltd (Shree Om) is offering at INR 32,200/MT (down by INR 300/MT).
-- Wardha based Sangam TMT is currently offering at INR 30,800/MT.
-- Chennai based ARS Steel (Trusteel - 550D) has unchanged their offer at INR 36,300/MT.
Note – Prices mentioned above are ex-work, excluding GST & changes are placed on day basis. Prices are subject to reconfirmation.
source: SteelMint
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