India’s major steel producers; SAIL, TATA, JSW & RINL have increased rebars offers again by INR 500-1,000/MT (USD 8-15), trade sources revealed to SteelMint, on Friday. Prior to this the manufacturers have raised their offers in the beginning of Dec’17 by upto INR 1,000/MT (USD 15).
As per the assessment current reference prices for 12-25mm rebars by these producers are hovering in the range of INR 36,000-36,500/MT (ex-Mumbai) and INR 37,000-37,500/MT (ex-Delhi). The prices are ex-works & excluding GST @ 18%.
“Rising raw material cost and strong export orders are the major reasons behind consequent price rise” stated a SAIL (Steel Authority of India) official on steep rising offers.
Notably, the large producers are aggressively participating on exports and are floating tenders one by one.
In latest update, an export tender of 40,000 MT billets by a major Indian state owned producer has been under intense negotiation despite receiving high bids at USD 500/MT as compared to last deal at USD 460-465/MT, FoB India.
Also, JSW Steel – India’s largest private steel producer is currently not offering any billet cargo for both exports as well as domestic market due to packed schedule with export orders. If the trade participants are too be believed the producer had sufficient bookings till Feb 2017.
An officials from SAIL shared that the bookings are done till Jan’17 and last billet export deal was made at close to USD 485-490/MT FoB India. And now the producer is looking towards deals at around USD 520-525/MT FoB. The fresh tenders are expected to be floated by end of the current month.
With healthy export deals on the cards, India’s billet exports have reached a record high in 2017 (Jan-Nov). According to data maintained by SteelMint stats, India exported about 2.3 Mnt Billet under HS code 7207 as compared to 1.75 MnT in 2016, which is higher since 2013.
Similarly, according to provisional data released by Joint Plant Committee, India’s finished steel exports shot up significantly by 30% M-o-M basis to 1.012 MnT in Nov’17 against 0.778 MnT in Oct’17. The nation’s finished steel exports have also increased sharply by 53.6% against in Nov’16 on yearly basis.
So far in FY18 (till Nov’17) total finished steel exports increased 57.1% Y-o-Y to 6.639 MnT.
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