Indian Rebar demand continued weakening amid dull sentiments observed across regions, hence prices of medium and small scale manufacturers fell by INR 500-700/MT (USD 7-10) on weekly basis.
Meanwhile on the other hand, trade discounts have been floated as per region wise by one of the major mills (SAIL) by around INR 400/MT, SteelMint learned from the officials.
Factors which have led to dull sentiments:-
Price corrections have been notified since from beginning of the month amid considerable stock with mills & associate traders/ dealers, this has resulted in lowering of offers to escalate trade volumes.
However it is being noticed that due to weak demand, the major supplying regions have adjusted their production level up to 60-70% to prevent piling up stock. Further the participants are assuming minor fall in prices till next week or general election results as lifting of material is being slowed down.
Dull Sentiments not even holding up in domestic market but also hovering in global market amid trade tensions between two major economies and price contraction can easily noticed from raw materials to finish steel in domestic as well as global market tracking by SteelMint.
Further, liquidity crunch in Indian domestic market is also one of the key factors as payment cycle is disturbed among market participants amid ongoing polling and considerable outflow of foreign institutional investors due to increasing weight of China A shares from 0.5% to 0.10% in the emerging market indexes by one of the global index provider.
Limited demand also affected finish long imports and the volume shrunk by 20% on monthly premises and registered at 0.04 MnT in Apr’19 against 0.05 MnT in Mar’19.
As per assessment, the current trade reference rebar prices through the mid size mills hovering at INR 34,700-35,000/MT Ex-Raipur & INR 36,200-36,500/MT Ex-Jalna. Whereas, large mills offering at around INR 40,700-41,000/MT Ex-Chennai & INR 40,500-41,000/MT Ex-Mumbai. The prices are excluding 18% GST & for 12mm rebar.
Trade Updates (Rebar 12mm)
— North region based Rathi Steels current offering at around INR 38,000/MT.
— Central region, Raipur based – SPEED TMT is offering at INR 35,000/MT (down by INR 300/MT).
— Real Ispat (GK TMT) has unchanged their offers at INR 37,300/MT.
— Raigarh based Anjani Steels Ltd. (Radhe TMT) is offering at INR 35,300/MT (down by INR 200/MT).
— Jalna based Rajuri Steel Pvt Ltd (Rajuri TMT) has maintained their offers at INR 36,500/MT.
— Mumbai based Vistar Metal Ind. Pvt. Ltd. (Vistar TMT) is offering at INR 36,100/MT (down by INR 200/MT).
— Chennai based J.R. Metal Chennai Ltd. (JR TMT) is offering at INR 37,500/MT.
Note – Prices mentioned above are ex-work, excluding GST & changes are placed on day basis & prices are subject to re-confirmation.
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