Indian Rebar Inventories with Large Mills Drop around 25% in Dec – SteelMint’s Assessment

Rebar inventories with Indian primary mills have reported to have lowered by close to 25% M-o-M in Dec. According to data compiled by SteelMint, Re-bar inventories with the major mills like SAIL, Vizag Steel, Tata Steel, JSW Steel and JSPL have lowered to around 370,000 MT in Dec’19 against 510,000 MT in Nov’19 and around 650,000 MT in Oct’19.

Re-stocking, increased export volumes and production cut by few mills have resulted in falling inventories.

Monthly average rebar price assessment of primary players maintained at SteelMint increased by INR 500-600/MT M-o-M in Dec’19.

Outlook: Indian primary players have raised rebar offers twice so far in Jan’20, citing better demand and hike in offers by mid sized players. Rebar inventories are likely to come down further by end Jan’20.