The long steel buyers in domestic market were not able to accepted these high prices resulted steep decline in offers in last couple of days. The prices correction is in the range of INR 500-1,000/MT (USD 8-15).
Rebars:
– Anemic demand and approaching GST is major reason stated by the market participants. Also, the RERA Act, 2016 (implemented from May’17) is adversely affecting the construction sector hence forth declining the rebar demands by the builders.
– Under this act state-level Real Estate Regulatory Authorities (RERAs) will be able to regulate transactions related to both residential and commercial projects and ensure their timely completion and handover in most efficient and the timely manner.
One of the manufacturer based in Western Region, Jalna stated that “RERA has declined the number of booking by the builders as starting of certain project has become lengthier and time consuming”
Wire Rod:
The re-rollers in Raipur & Durgapur have declined the wire rod offers drastically in last couple of days about INR 800 /MT(USD 12).
Also in Raipur, Central India based wire manufacturers have reduced the rebate amount which was around INR 500-1,000/MT(USD 7-14) previously to around INR 500/MT currently and selling the product at the marked price.
Structure:
After holding the offers firm, structure manufacturers reduced (INR 200-500/MT) their offers in line with slump in Ingot-Billet offers.
One of the manufacturers based in Central India, Raipur stated that “we were holding the offers only because of the higher input cost like high billet and ingot prices even though the demand was average since past few days”
Stockiest are pessimist about holding the bulk stock with them due to approaching GST where in Indian Government hasn’t cleared the picture about how the stock will be audited by them.
Source: SteelMint Reasearch
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