Indian Primary Steel Mills to Hike Rebar Price in Dec’19

Primary steel mills i.e. RINL, SAIL, JSW Steel & JSPL are expected to raise domestic finished long steel prices for Dec’19, sources reported to SteelMint.

Healthy export bookings  with improved domestic demand, rising raw materials along with availability of funds from selective institutional investors who are willing to come forward for pending project works with adequate involvement of developer and builders to secure risk ratio are key factors which have influenced the large scale mills to hike offers next month.

SteelMint also learned that, demand with the large scale mills is evolving than the medium scale mills, due to narrowed down price gap between large mills and medium/small mills in semis & finished long steel products.

For instance, the price gap in wire rod & rebar between the large & medium scale mills hovering at INR 2,000-3,000/MT which should be near to INR 3,500-4,000/MT. In line with this, semis material are being competitive of large scale mills, this in turn boosted demand with the mills for domestic as well for exports.

As per officials from India’s largest government owned steel mill, they have healthy orders for domestic & exports due to significant hike in scrap & billet prices globally. Hence amid healthy orders & due dispatches, they are looking to raise prices by INR 500-1,000/MT (USD 7-14) in long steel.

Further, a senior person from the southern Indian mill reported that, prices have been increased by INR 500-1,000/MT during mid of Nov’19. However with sufficient orders in hand, we are planning for another hike in Dec’19.

Also it is learned that, shortage of material in western India with a private mill due to undergoing maintenance in it’s Dolvi, Maharashtra based plant since a month’s time and current delivery schedule to be place after 3-4 days due to pending trade log figures. This mill produces rebars & wire rod, as per sources.

Thus looking to the scenario of improving demand, supply tightness along with high cost raw materials, it seems that large mills are gearing up for price hike in coming month. In Nov’19, the mills had raised prices by INR 500-1,000/MT (USD 7-14).

Rebar Trade Reference Prices of Nov’19

Note- All prices are basic & excluding GST.