Rebar Price Gap Between Large and Medium Mills Grows in July’18

As per SteelMint assessment, presently price gap in Rebars between large and medium mills have enlarged to INR 4,500-5,500/MT (USD 65-80) in major Indian markets. Earlier during May’18, the price gap between the both was at close to INR 3,500-4,500/MT (USD 51-65).

The price gap has widened in line with constant fall in prices by medium mills, however at the same time large mills have also decreased prices but not at the same pace.

For instance in last one month, the medium mills in domestic market (Mumbai) have sharply decreased prices by INR 4,000-4,500/MT, while in the same period, price reduction by large mills like JSW, RINL, SAIL, JSPL, Tata Steel are in the range of INR 1,000-2,000/MT.

Currently in Mumbai – large Mills are offering Rebar at around INR 42,500-43,000/MT, meanwhile by medium and small scale mills offered at INR 35,500-36,000/MT. Prices are for 12-25 mm Rebar, ex-work & excluding GST at 18%.

As per market participants, domestic long steel prices has fallen much in the last one month and also expecting that prices are unlikely to fall further.

Industry leader also believed that construction activities to remain dull during Jul-Aug’18 period owing to ongoing monsoon season. Thus, trade activities seems to be limited and likely to impact on prices.