Despite being the peak time going on for the construction industry, Indian large mills are facing tough competition in selling rebar from the end-users as per the market participants. Instead, Large mills are offering competitive prices in order to push sales.
As per SteelMint Assessment, Presently, a few large mill is offering rebar in big infra projects at around INR 39,500-40,000/MT (ex-Chennai, size-12mm, GST extra), whereas medium mills are offering rebar between INR 36,800-37,200/MT for the same size material.
Similarly, in Gujarat, Western India, a large mill is offering rebar at around INR 39,000-39,500/MT mainly for large projects while medium mills are offering rebar between INR 37,800-38,200/MT (ex-Ahmedabad) for same size material.
Meanwhile the upcoming general election in the mid of 2019 and assembly election in few states like Andhra Pradesh and Maharashtra are likely to keep the construction activity in full swing till the election takes place.
Most of the Indian mills have rolled over the prices in long products for Jan’18 deliveries despite the market is not very encouraging so far. As per sources, a large mill based in South India has provided incentives in rebar by INR 800-1,000/MT for the current quarter depending on the size of (large) quantity and it is expected that others are likely to follow the suit.
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