Indian major steel mills are likely to announce finished long steel prices for June deliveries. The announcement is expected to be made shortly and particularly rebar prices are expected to be rolled over, as per closed sources reported to SteelMint.
Current trade reference rebar prices of 12mm (Fe 500D, BF grade) are reported at INR 38,000-38,500/MT ex-Chennai and Mumbai, excluding 18% GST .
The key factors behind prices remaining stable are–
— Sufficient stock with trade associates (distributors/retailers) in most of the regions.
— Limited trades over measured construction activities due to inadequate workforce, which may continue slow procurement of finished steel in near term.
— Appropriate price gap between large and medium/small scale steel mills rebar prices, which is hovering at INR 4,000/MT Ex Mumbai, INR 3,500/MT Ex-Chennai.
— Less inquiries on sharp hike in billet export prices to the SE nations & China
Near term outlook
Market participants’ shared increase in stocks has led distributors to liquidate current stock level rather than procuring material at existing price range for June. This may further force mills to keep prices stable or undergo minor correction in order to improve sales, as per market requirement.
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