October 22,
Rebar (TMT) prices across India fell by Rs 300-400/MT on weak demand. Demand have been sluggish for few months.
The Indian steel market seems to be cursed from quite some time. Market players have been searching different ways to get off the vicious cycle but have always ended up being apprehensive more than before.
The question which remains inevitable is “when would the market get back its lost charm?”
Demand for steel has been weak and has not materially picked up post monsoons and festivals. Consumers are not really willing to re-stock and expect prices to go down. Whereas,manufacturers complain about liquidity crunch in the market. Thinner conversions due to higher input costs have forced them to reduce their capacities by nearly 50%.There has been a complete mismatch in demand and supply.
Latest Prices of TMT as on date 22 Oct
Mandi Gobindgarh 12 mm 35,200 (-200)
Mumbai 12 mm 32,400 (-300)
Cuttack 12 mm 30,500 (0)
Durgapur 12 mm 30,100 (0)
Hyderabad 12 mm 29,000 (-200)
Jalna 12 mm 31,200 (-200)
Raipur 12 mm 29900 (-400)
Rourkala 12 mm 30,000(0)
* Excise Duty included, taxes as applicable
Predictions are being made from a long time for a market revival post Diwali i.e. from second week of November. Manufacturers and traders are also hopeful for better demand with the construction picking up on abandoned projects. The approval of new sand mining policy by the Maharashtra Govt. might push some demand for finish goods at mandis’ in the West.
But, for now demand will remain unsystematic and a slight rise in demand could ignite a price hike of steel products.
Reported by : Monica Patnaik
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