India: Rebar Demand in Secondary Market Remains Bearish

Indian mid size rebar mills observed increase in selling pressure and price range declined by INR 400-600/MT (W-o-W) in overall regions.

However the market participants are assuming to get some improvement in situation from coming week with minor amendments in existing scenario.

Supply chain has been disturbed amid ongoing elections in particular regions and it should be noted that in general post elections demand improves with better liquidity along with developed procurement.

Further, Raipur based heavy structure manufacturers have slightly raised trade discount to INR 700-800/MT and current trade reference price (200 Angle) stood at INR 42,000-42,200/MT ex-works & excluding GST.

In context to price movements of large scale mills, recent Vizag Steel (RINL) has reduced finished steel prices by around INR 500/MT. The reference rebar (12 mm) prices of large mills hovering at INR 43,000-43,500/MT & Structure (100/125 Channel) at INR 44,500/MT ex-works, Mumbai & excluding GST.

Trade Updates

— North region based U.P – Gallant Ispat Ltd unchanged their prices on day basis and offering rebar at INR 39,700/MT (10-25 mm), excluding GST.

— North India based Rathi Steels slightly increase their prices by INR 250/MT on day basis and offering at INR 40,600/MT (12 mm), ex-works & excluding GST.

— Central region, Raipur based brand – SPEED TMT unchanged their price on day basis and offering at INR 36,200/MT (12 mm) ex-work & excluding GST.

— Central region (Raipur) based Kamdhenu TMT currently offer rebar (12 mm) at INR 38,600/MT, ex-work & excluding GST.

— Gujarat based Shreeyam Power & Steel Industries Ltd branding as National TMT unchanged on day basis and offering at INR 38,000/MT FoR (12 mm) & excluding GST.

— Gujarat based, Keyur Ispat Ltd has unchanged their price d-o-d basis & offering rebar at INR 37,600/MT FoR & excluding GST.

— Jalna based Kalika Steels has increased their prices by INR 200/MT on day basis & offering at INR 37,300/MT (12 mm) ex-plant & excluding GST.

— Mahalaxmi TMT based in Wardha – Maharashtra unchanged their rebar prices on day basis and offering at INR 36,600/MT ex-plant.

— South region – Chennai based ARS Trusteel has unchanged their prices on D-o-D basis & offered rebar at INR 41,800/MT (12 mm), ex-plant & excluding GST.

— East region based – Shakambhari Ispat & Power Ltd has offered Wire Rod 5.5 mm at INR 39,000/MT & rebars at INR 38,600/MT (12 mm), ex-work, excluding GST.