India: Medium Mills Rebar Offers Inch Up

As per assessment, medium mills have slightly raised their rebar offers on positive trends in particular regions but trade volumes remain thin which is a major concern for them as future bookings are limited.

Participants stated that “positive direction absorbed on assumptions of imposition of Minimum Import Price (MIP) from last couple of weeks and expecting strong for the stable direction near term through the mid sized mills”.

It is analysed that, production levels by Central region based rolling mills remains limited due to low conversion spread from billet to rebar which is currently hovering around INR 2,800-3,000/MT ($ 39-42) considering trade discounts. Meanwhile as per producers the required spread for hot rolling mills (HRM) is about INR 3,600-3,700/MT ($ 50-52) & for standalone mills it should be around INR 4,000-4,200/MT ($ 56-59).

Further in Western region – Gujarat & Maharashtra based participants reported better response and average trade stated and as per producers stock level is maintained on regular basis which could vary as per mills.

Meanwhile in Central & Northern region there are limited future bookings with the producers and slow buying inquiries have been registered through traders due to measured trade discounts.

Current trade reference prices for 12 mm rebar registered at INR 36,500-36,800/MT Ex-Raipur & INR 38,500-38,800/MT Ex-Jalna.

Trade Updates (12 mm rebar)

— North region based Rathi Steels current offering around at INR 39,350/MT, Ex-Delhi.

— Central region, Raipur based – SPEED TMT current offering INR 36,900/MT (Up by INR 200/MT).

— Gujarat based, Mono Steel (India) Ltd. (Mono TMT) current offering around INR 39,700/MT FoR (Up by INR 200/MT).

— Gujarat based Shreeyam Power & Steel Industries Ltd branding as National TMT current offering at INR 39,900/MT FoR (Up by INR 200/MT).

— Jalna based SRJ Peety Steels Pvt Ltd (Shree Om) TMT current offering at INR 38,700/MT (Up by INR 400/MT).

— Mumbai based Vistar Metal Ind. Pvt. Ltd. (Vistar TMT) offering at INR 39,300/MT (Up by INR 400/MT).

— Goa based Kamdhenu TMT current offering at INR 40,300/MT.

Note – the prices mentioned above are ex-work, excluding GST & changes are day basis.