Indian Primary Mills Keep Rebar Prices Unchanged for Sep'19

Indian large mills have rolled over rebar prices despite the weak buying interest, which is being observed through the trade associates along with sufficient stock with mills.

SteelMint learned from the participants that, Vizag Steel (RINL) & JSW Steel, which are the major producers of long steel in India have kept offers firm for Sep'19 deliveries.

However couple of other major producers i.e. JSPL & Electrosteels Ltd have increased the price range by INR 500-1,000/MT as their prices were slightly lower than competitive brands.

With the fresh price revision, the large millls rebar prices stood at around INR 33,000-33,500/MT ex-work, Jharkhand - eastern India & around INR 35,000/MT ex-works, Mumbai - western India, excluding 18% GST & size 12mm.

The trade associates cited that, finish steel procurement got narrowed down due to weak sentiments on measured cash rotation, delayed payment cycle as well as bounded lending for incomplete projects, which are the major factors to be considered to prevent strengthening finish long prices for September deliveries.

Further the trade players anticipate that, minor price contraction could take place for near term as internal trade discounts have been being floated by a southern India based mill upto INR 2,200/MT as per commodity and booking quantity shared by trade sources. Hence the other large mills may are expected to follow suit in order to improve trade activities.