Indian rebar prices of secondary mills slightly fluctuated by INR 100/MT today amid volatile raw material (billet) prices and subdued demand from the local buyers.
However on weekly comparison the rebar prices fell by around INR 100-400/MT, in which major drop of INR 400/MT observed in northern region, Delhi which indicates weak response in finish steel due to ban in construction activities in the NCR region. Also it is learned that trade discount in rebar for NCR raised by INR 200-300/MT to INR 1,500/MT on weekly basis, to improve trade volumes. As per the recent notification from South Delhi, ban in construction activities extended till 30th Nov’19, which was earlier by 26th Nov’19.
Meanwhile in remaining locations trade discounts in rebars more or less firm over average demand, fluctuating billet prices and sufficient stock with the re-rollers.
For instance, the mills in central & eastern, which are known as the major suppliers of finished steel to Uttar Pradesh (Northern region), have reported lack of demand which led to an increase in stock level. Although as the billet prices are fluctuating, the producers are maintaining prices with slight change.
Following this the trade participants are believing that, there are less chances for any major improvement in near term considering adequate stocks in specified locations.
Similarly in Western region – Gujarat & Maharashtra, secondary mills have reported subdued demand, which indicates them no major change in finished steel price range in the coming days.
As per assessment made by SteelMint, the current trade reference rebar offers by mid scale mills hovering at INR 29,600-29,800/MT ex-Raipur, INR 30,800-31,200/MT ex-Durgapur, INR 31,200-31,600/MT ex-Jalna & INR 31,500-31,900/MT ex-Chennai, Grade- Fe500, excluding 18% GST & size 12 mm.
Trade Updates (Rebar 12 mm)
— Rathi Steels based in North region has unchanged their offer at INR 33,500/MT.
— Raigarh based Anjani Steels Ltd. (Radhe TMT) is offering at INR 30,200/MT (down by INR 200/MT).
— Jalna based Bhagyalaxmi Rolling Mill Pvt Ltd (Polaad TMT) has unchanged their offer at INR 31,700/MT.
— Jalna based Rajuri Steel Pvt. Ltd.(Rajuri TMT) has unchanged their offer at INR 31,600/MT.
— Gujarat based, Mono Steel (India) Ltd. (Mono TMT) has unchanged their offer at INR 32,400/MT FoR.
— Gujarat based Diamond TMT has unchanged their offer at INR 32,600/MT.
— J.R. Metal Chennai Ltd. (JR TMT) is current offering at INR 32,300/MT.
Note- All prices are basic & excluding GST, subject to re-confirmation.
Leave a Reply