Finish long steel market has observed limited demand over decline buying inquiries from the traders as well as end user segment along with poor lifting of material, particularly in re-bars in Indian domestic market.
Thus, considering the factors, the prices through the medium/small scale rebar mills have contracted up to INR 1,100/MT (USD 16), specifically in central India whereas in other regions it declined by INR 200-600/MT on weekly comparison basis.
Additionally, the demand of rebar varies from market to market and so as the participants’ views, as few are positive on market direction while some are looking volatility or minor correction but majority of them are assuming the rebar prices to range bound with minor fluctuation at current offers.
Specifically, western region (Maharashtra/Gujarat) based few participants are looking for positive direction in coming days amid shortage of semis products (billet) and average supply movement notified in basic raw material (melting scrap) as it’s being considered scrap based region.
Rest of the regions like Central/East/Southern India based mills reported limited future bookings in hands amid pending deliveries of previous trade log and market associates remain curious for further direction of the market and no major selling pressure has been observed among industrialists for coming short duration.
In addition, the current conversion spread (margins) between rebar to billet is range-bound and there seems less chances of significant price correction. Meanwhile as per assessment, the margins (conversion) are hovering at INR 3,800/MT Ex-Raipur, INR 5,700/MT in Ahmedabad FoR, INR 4,300/MT Ex-Mumbai, INR 4,700/MT Ex-Jalna & INR 3,500/MT Ex-Chennai.
— Current trade reference rebar offers by mid-scale mills are hovering at INR 33,700-34,000/MT ex-Raipur, INR 34,400-34,800/MT ex-Durgapur & INR 36,300-36,700/MT ex-Jalna, Grade- Fe500, excluding 18% GST & size 12 mm.
Trade Updates (Rebar 12 mm)
— Rathi Steels based in North region is current offering at INR 37,700/MT.
— Muzzaffarnagar based Swarup Rolling Mills Limited (Swarup TMT) is current offering at INR 35,000/MT
— Raipur based Real Ispat (GK TMT) has unchanged their offer at INR 36,200/MT.
— Jalna based Bhagyalaxmi Rolling Mill Pvt Ltd (Polaad TMT) is offering at INR 36,700/MT (up by INR 200/MT).
— Jalna based Gajkesari Steels and Alloys Pvt Ltd.(Gajkesari TMT) is current offering at INR 36,200/MT.
— Gujarat based, Mono Steel (India) Ltd.(Mono TMT) is current offering at INR 38,900/MT FoR.
Note- All prices are basic & excluding GST, subject to re-confirmation.
Leave a Reply