Production of rebars, which are extensively used in construction & infrastructure works, are less likely to weaken despite being adversely affected by more than 30% in major locations. SteelMint has confirmed this from a few of secondary plants in Central & Western regions.
As per them, with rising fear of Covid, there is lessened availability of contractual labours who are deployed in bundling the rebars. In addition, shortage amidst rising cost of oxygen are other factors, which may result in pushing up rebar prices in coming days, even if demand remains stagnant.
Yesterday, the major mills in Jalna, Maharashtra have reported a drop in rebar productions by 50%. In the Central region too, production is slightly lower as compared to output during March 2021.
In context to raw materials, sponge & billet prices continue to remain strong on the back of rising iron ore & pellet prices.
Yesterday, a sharp hike in Iron ore prices by NMDC has fueled the market with expectations that finished steel prices will remain supported on the back of tight positions of raw materials.
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