Indian secondary rebar mills are striving hard to fetch better trade volume but the market is still under pressure due to lack of domestic demand. The prices have come down upto INR 1,000/MT (USD 14) W-o-W, in overall regions.
As per conversation with mill owners & trade associates they observed that prices are consistently trending in downward direction amid low buying inquiries. As per sources, dull demand is due to uncertainty and factors like delay payment/liquidity crunch/limited production utilisation. Market indications remained weak.
However, few Industrialists in western India are assuming that financial year end will support the steel market amid project completion and it might improve rebar demand.
Further, as per recent report somewhere to revive real estate & automobile industry RBI has announced to adjust Credit Reserve Ratio (CRR) against bank’s CRR requirement and ensuring to meet 90% of their requirement i:e; currently CRR is hovering at 4% and ensuring 90% of it means 0.4% additional lending window and it would be adjusted against loan disbursed to new retail & MSME till 31st July 2020. This would be ultimately improve lending process & housing demand as well.
However market observed continuous downfall in prices from past two-three week and this week especially in major supplying hub of western India where prices down up to INR 800-1,000/MT and getting mixed response from trade participants regarding trade activity in which few mill owners are saying moderate trade activity in current price range and according to their view raising prices is fine but sustainability of hike price still in concern.
South region based few trade associates shared that sales volume have been decreased up to 30-40% compared to monthly basis and lessening raw material prices might affect the price range in the near term.
As per assessment, the latest rebar offers by mid sized mills hovering at INR 32,500-32,700/MT ex-Raipur, INR 33,000-33,400/MT ex-Durgapur, INR 34,700-35,100/MT ex-Jalna & INR 35,200-35,600/MT ex-Chennai, Fe500, excluding 18% GST & size 12mm.
Trade Updates (Rebar 12 mm)
— Rathi Steels based in North region is offering at INR 36,100/MT (down by INR 400/MT).
— Muzaffarnagar based Sarvottam Rolling Mills Pvt. Ltd.(Paras TMT) is current offering at INR 34,000/MT.
— Raipur based Real Ispat (GK TMT) has unchanged their offer at INR 35,100/MT
— Raigarh based Scan Group branding (Shrishti TMT) is current offering at INR 33,300/MT.
— Jalna based Kalika Steels Alloys Pvt. Ltd. (Kalika TMT) is offering at INR 35,200/MT (down by INR 100/MT).
— Jalna based SRJ Peety Steels Pvt Ltd (Shree Om) is current offering at INR 35,100/MT.
— Gujarat based, Mono Steel (India) Ltd.(Mono TMT) has unchanged their offer at INR 36,500/MT FoR.
— J.R. Metal Chennai Ltd. (JR TMT) is current offering at INR 35,500/MT.
Note- All prices are basic & excluding GST, subject to re-confirmation.
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