India: Rebar Prices in Secondary Market Hovering at 2-Years Low

Indian rebar prices of medium and small scale mills hit nearly 2 years low amid constant downfall over dull demand amid heavy monsoon season which has put construction activities on hold. As per SteelMint's assessment the prices slumped by INR 500-1,500/MT (USD 7-21) W-o-W.

However on daily assessment, the trade volumes slightly improved specially in central region (Raipur & Raigarh market), this led to increase in price range by INR 200-300/MT as against last day deals.

Whereas, western India (Jalna & Mumbai) observed stable sentiments due to heavy rainfall and rebar prices narrowed down by INR 300-400/MT day on day and trade associates are assuming rebar prices may slightly rise due to surrounding positive sentiments in neighboring regions.

Further they added that, monsoon season which resulting disturbed supply chain and few major consumptive locations disrupted in a broad way with measured construction activities as rebar prices slump by INR 500-1,500/MT across regions in a week's duration.

In addition SteelMint learned that, housing projects in metro cities couldn't absorb the satisfactory response from end user amid delayed payment cycle which badly affected the routine purchases from trade associates.

However developers in western region are eyeing to get positive outcome post monsoon amid recent reduction in Repo rate by 35 basis points to 5.4% through RBI which will ultimately narrow the easy monthly installment and easier finance options might evolve buying interest, reported by trade sources.

Market participants are assuming short term trade volumes likely to remain range bound and current price range may vary marginally as buying inquiries still needs improvement.

Trade Updates (Rebar - 12-25 mm)

-- Rathi Steels based in North region current offering around INR 32,600/MT.

-- Raipur based Real Ispat (GK TMT) has unchanged their offers at INR 31,000/MT.

-- Raigarh based Anjani Steels Ltd. (Radhe TMT) has unchanged their offers at INR 28,500/MT.

-- Raigarh based Scan Group branding (Shrishti TMT) has unchanged their offers at INR 29,100/MT.

-- Jalna based Bhagyalaxmi Rolling Mill Pvt Ltd (Polaad TMT) is offering at INR 30,500/MT (down by INR 500/MT).

-- Jalna based Rajuri Steel Pvt. Ltd. (Rajuri TMT) is offering at INR 30,400/MT (down by INR 400/MT).

-- South region based – Prime Gold Int’l Ltd current offering at INR 36,100/MT for Bangalore.

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