As per the market participants, Indian steel mills are planning to raise rebar prices by INR 500-1,000/MT in early Sep’18, expecting revival in domestic demand following the end of monsoon season.
Trade sources also reported, all major large mills are now running at low inventory level as compared to previous month which indicates chances of price increase.
Prices in Indian secondary market have also moved up since the starting of the month which provides the edge to large mills to increase prices. Rebar prices surge in Mumbai and Raipur by about INR 2,000-2,500/MT so far in this month.
As per the JPC report based on Mar’18, total domestic rebar production was around 23.04 MnT during Apr-Mar’18. Out of total rebar production, large mills contribute 36% while others mills consist of 64%. Following increase in prices in secondary market, major mills may also raise offers.
As per our custom data, one of the large mill based in south India has exported bulk quantity of rebar to overseas market in the last two months leads to lower availability of material in the domestic market.
As per custom data available with SteelMint, JSW steel has exported around 40,000 MT rebar in Aug and 60,000 MT in July in South-east Asian countries.
Presently, large steel producers are offering 12-25MM rebar are in the range of INR 40,500-41,000/MT (ex-Mumbai, 18% GST) and small & medium based rebar mills are offering it around INR 37,500-38,000/MT (GST 18% extra) for the same location.
In starting of current month, almost all large mills had reduced rebar prices by INR 500-1,250/MT on account of low seasonal demand
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