The Large scale producers – who contributes more than 55% of steel production in India, have slightly lowered their offers for rest of July deliveries.
As per an official of South India based large scale manufacturer “seasonal poor off take & declining prices of medium mills are the major factors behind slump in prices by large industries.
In context to inventories, he added that, it is currently maintained on average basis“.
The current offers for 12-25 mm Rebars reported at around INR 42,000-42,500/MT as against last offers at near about INR 42,500-43,000/MT, ex-works, Mumbai & Chennai.
Another sales head from a biggest Steel producer in India based in South-West regions stated, decline in sales volume for project works owing to ongoing monsoon season and anticipates that prices are likely to remain under pressure as supply is strong, however demand is less by about 30-40% than the earlier.
Rebar price gap widens
Currently the Rebar price gap between the Large & Medium scale industries widened to INR 6,000/MT (USD 87), which was during May-Jun’18 around INR 4,000/MT (USD 58).
The price gap increase in line with sharp fall in prices by medium mills and as per assessment in a month duration the Rebar prices by medium mills reduced by INR 4,000-5,000/MT (USD 58-73), while in the same frame – large mills have cut prices by around INR 2,000/MT (USD 29).
The fresh Rebar offers for 12-25 mm size by Small/Medium mills hovering at INR 35,300-35,800/MT, while by large producers it quoted about INR 42,000-42,500/MT ex-works, Mumbai, West India.
The Rebar producers in Central & West regions – the hub of medium/small scale industries, reported rise in inventories and indicates production cut if demand remains poor, to match demand-supply chain.
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