Indian mid sized mills rebar trade inquiries remained consistently slow in most of the locations. Thus, the price range gradually fell by INR 100-400/MT on weekly basis.
North region based few trade participants are hopeful that recent partial lifted ban in construction activities may result in some improvement in procurement and halted project works could absorb some happenings towards completion stage but there is no immediate impact due to lack of workers as ban activities notified from couple of months. However another major factor is that ban may get re-imposed in construction if air quality will get severe.
In addition, major supply locations of western and central regions also observed measured trade activity in local market as well as for other states and most of the mill owners have maintained their offers almost stable but discount level increased by INR 200-400/MT as per the quantity and payment terms.
Meanwhile, in eastern India mills have narrowed down price range by INR 300-400/MT W-o-W and stock level bothering to elongate trade discounts rather to sell at current offers which is observed at INR 30,600-31,000/MT for 12mm rebars.
Also, southern markets hovering in the same situation where finished steel demand remains same or can consider inappropriate from industrialists view where strengthening domestic melting scrap prices are getting transacted between INR 21,000-21,500/MT depending upon payment terms and rebar prices slightly inched up vary by brand to brand and currently exist as INR 32,000-32,500/MT on regular payment terms.
— Current trade reference rebar offers by mid scale mills hovering at INR 29,200-29,400/MT ex-Raipur & INR 30,800-31,100/MT ex-Jalna, Grade – Fe 500-550, excluding 18% GST & size 12 mm.
On an outlook, the participants believe, if the same situation persists, the mills may go for further production cuts or gradually lower price range to clear their inventories & to maintain margins (conversion spread) which is currently in the range of INR 3,000-4,000/MT (USD 42-56) from Billet to 12mm rebars, in major locations of central, east & western India.
Trade Updates (Rebar 12 mm)
— Rathi Steels based in North region has unchanged their offer at INR 32,800/MT.
— Raipur based Real Ispat (GK TMT) has unchanged their offer at INR 31,800/MT.
— Jalna based Bhagyalaxmi Rolling Mill Pvt Ltd (Polaad TMT) is offering at INR 31,300/MT (down by INR 200/MT).
— Jalna based Rajuri Steel Pvt. Ltd. (Rajuri TMT) has unchanged their offers at INR 31,300/MT.
— Gujarat based, Mono Steel (India) Ltd.(Mono TMT) has unchanged their offer at INR 32,500/MT FoR.
— Gujarat based Diamont TMT is current offering at INR 32,800/MT.
Note- All prices are basic & excluding GST, subject to re-confirmation.
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