Indian Finish Long Steel Demand Remain Restrained

With an effective transportation strike there has been less inquiries for Finish Long Steel – Rebars from last few days.

As per daily assessment, the rebar price narrowed down up to INR 500/MT (USD 7.5) particularly in North region, whereas minor fall of INR 100-200/MT have been absorbed in other regions as well.

Further, trade participants have mentioned, with the logistic issue inventories with the mills have piled up which in turn has created selling pressure in most of the major markets.

Trade Updates

1. Central region, Raipur based brand “SPEED TMT” known as price settler for other brands decline their prices by around INR 500/MT from last couple of days & current offering basic at INR 32,800/MT (size – 28 mm), ex-work & excluding GST.

2. Jalna based rebar manufacturer – Rajuri Steel Pvt Ltd unchanged their prices on day basis and offering 28mm rebar at INR 34,000/MT, ex-work & excluding GST. As per official view, purchase inquiries can’t be filtered due to transportation strike.

3. South region based Prakash Ferrous Industries Pvt. Ltd (Tirumala) has unchanged prices on day basis & current offering 12mm rebar at INR 41,000/MT ex-plant & excluding GST. As per official view monsoon is getting noticed here & existing demand has no major movement and further minor correction may get noticed.

4. Shakti Ferro Alloys in Chennai, South Region has offered rebar at INR 39,000/MT (12 mm) and Billet at INR 34,000/MT with immediate payment term ex-work & excluding GST. As per official view demand is dull and export inquiries can’t be concluded with having considerable gap of around USD 5-10/MT from South East Asia.

5. The suppliers in Raipur, Central India have increased trade discount on Wire rod due to poor inquires. Current trade discount are in the range of INR 800-1,200/MT, reported by participants.

6. East Region Based – Baba Smelter Pvt. Ltd has slightly reduce the price range of structures by INR 250/MT and current offering 125,150 Channel at INR 37,750/MT, ex-work & excluding GST. As per official view demand is slow but projected supply doesn’t get bothered and average inventory level is maintained.