Rebar prices of medium/small scale manufacturers have hit 19-months low amid subdued demand. Similar price levels were last recorded in Dec’17.
Factors behind subdued demand and lowered price range –
Limited procurement – Less construction activities amid monsoon season continue to weigh down market sentiments and bookings are being done as per requirement due to constant drop in prices. Also project works have got affected in few parts of the country due to water crisis, as per market sources.
Delayed Payments – As per trade sources, payment cycle is delayed in projects as well as in retail segment due to poor lifting of material and it’s been expected among trade players that finished steel prices will be range bound and there are less chances of major changes.
In addition its being observed that, recently few large mills have reduced finish long steel prices by around INR 1,000-1,500/MT and as per SteelMint assessment the current trade reference rebar prices hovering at INR 38,900/MT Ex-Chennai (Stock yard) & size 12 mm.
However it seems that existing price range of large mills rebar might not be acceptable by users due to enough price gap between primary & medium/small scale mills which is currently assessed at around INR 8,100/MT in Mumbai & INR 6,800/MT in Hyderabad.
Further, it’s being observed that conversion spread (margins) from Billet to Rebar has slightly moved up in major markets despite limited trade activities amid considerable stock. The increase in conversion is mentioned below.
Conversion Spread From Billet to Rebar (12-25 mm)
| Jalna | Raipur | |||||
| Product | May’19 | Jun’19 | Change% | May’19 | Jun’19 | Change% |
| Billet | 32,676 | 30,628 | -6% | 31,417 | 29,558 | -6% |
| Rebar | 36,581 | 34,948 | -4% | 35,244 | 33,808 | -4% |
| Spread | 3,905 | 4,320 | +11% | 3,827 | 4,250 | +11% |
Basic Monthly Avg. Prices in INR/MT
Source – SteelMint Research
Trade Updates (Rebar – 12 mm)
— Raipur based – SPEED TMT has unchanged their offers at INR 31,500/MT.
— Real Ispat (GK TMT) has unchanged their offers at INR 33,800/MT.
— Raigarh based Scan Group branding (Shrishti TMT) is offering at INR 31,400/MT (down by INR 100/MT).
— Gujarat based Akshar Ispat Ltd. (Akshat TMT) is offering at INR 34,000/MT FoR.
— Jalna based Bhagyalaxmi Rolling Mill Pvt Ltd (Polaad TMT) is offering at INR 32,300/MT (down by INR 500/MT).
— Jalna based Rajuri Steel Pvt. Ltd. (Rajuri) TMT is offering at INR 32,200/MT (down by INR 300/MT).
— Chennai based Sakthi Ferro Alloys India Pvt. Ltd. (SSI TMT) is current offering at INR 34,500/MT.
Note – Prices mentioned above are ex-work, excluding GST & changes are placed on day basis & prices are subject to re-confirmation.
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