Finish Long Trades Improve in Indian Secondary Steel Market

Finished long steel demand with medium scale mills in India has slightly improved resulting in recent spike in price range, as per weekly comparison.

The buyers have booked hefty volumes following surge in price range. Hence the mills don't have much selling pressure in most of locations.

The price range of rebar, structural steel & wire rod surged upto INR 1,000/MT (USD 14) across regions except in western India, where festive mood along with heavy rains have negatively impacted lifting of finished steel during the week.

REBAR

-- Jalna (located in Maharashtra) the secondary major mills here have cited average stock amid curtailed production level by 30-50% along with slight improved demand which has narrowed down inventories.

-- Further, the mill owners in Raipur, Raigarh, Rourkela & Durgapur stated no major unsold stock and the lifting of recent bookings are active from the neighboring states including local market as well. The production utilization is Raipur is about 50-70%, meanwhile in Durgapur the plants are operational in almost full utilization, as marked by mills.

-- Coming to Delhi & Gujarat (North & Western India), which are known as major consumer of finished products, the trade inquiries were less than the average as per sources. Hence there was no any major change in price range despite hike in prices across regions.

-- The trade reference rebar prices of 12mm assessed at INR 30,900-31,100/MT ex-Raipur, INR 31,900-32,100/MT ex-Durgapur, INR 31,800-32,000/MT ex-Jalna, INR 31,300-31,500/MT ex-Hyderabad & INR 32,800-33,000/MT FoR Delhi; through the medium scale mills.

STRUCTURAL STEEL

The demand has not picked in comparison to rebars. However as the billet prices moved up, the producers have followed suit. On an average the prices increased by INR 100-700/MT with major hike of INR 500-700/MT in Durgapur, Ghaziabad & Hyderabd.

The average trade discounts in heavy structures in Raipur observed at INR 1,500-1,800/MT and base prices of heavy structure (200 Angle) stood at INR 35,800/MT as against last week at INR 35,500/MT ex-plant.

WIRE ROD

Raipur & Durgapur are the major wire rod producers in India in terms of medium scale mills. The mills in Raipur has kept their offers strong and have lowered discounts. On an average earlier the stockiest were offered trade discounts near to INR 1,500/MT and by mills around INR 1,000/MT which is reduced in current week to INR 800-900/MT through the mills & stockiest end due to tightened offers & supply as well.

Further in Durgapur, strong demand were reported and mills sharply raised there prices by around INR 800-1,000/MT in a week. Demand was majorly from the local buyers as well neighbouring states. Inquiries in export were average.