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India: BF-rebar prices drop by INR 400/t ($5/t) amid weak demand

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16 Aug 2024, 17:36 IST
India: BF-rebar prices drop by INR 400/t ($5/t) amid weak demand

  • IF-rebar prices range-bound w-o-w

  • Raw material prices drop w-o-w

Trade-level blast furnace (BF) rebar prices fell w-o-w due to weak buying interest across markets, marking the tenth consecutive week of declining prices. Currently, rebar prices (12-32mm, Fe500D, and Fe550D) in the trade segment have decreased by INR 400/t ($5/t) to INR 49,900/t ($594/t) exy-Mumbai, excluding 18% GST.

In the projects segment, prices are currently ranging between INR 48,000-49,000/t ($572-584/t) FOR Mumbai. Market activity has been subdued due to the ongoing decline in prices and a disparity between bids and offers.

Factors weighing down prices

1. IF-rebar prices range-bound w-o-w: IF-rebar trade prices remained range-bound w-o-w due to need-based buying across markets. Buyers remained cautious amid market volatility, avoiding bulk purchases, which led sellers to offer attractive discounts to clear inventories. In response to weak market sentiment and higher inventory levels, mills have adjusted the production. Inventory levels for IF-rebars ranged from 12 to 15 days across markets. Trade-level IF-rebar prices edged up w-o-w by INR 100/t ($1/t) to INR 45,100/t ($537/t) exw-Mumbai as on 16 August.

The monthly average price gap between BF-IF rebars stood at INR 5,000-5,500/t ($60-65/t) ex-Mumbai. IF-rebars enjoy 65-70% share of the market.

2. Raw material prices drop w-o-w: Prices of key steelmaking raw materials, iron ore and coking coal, dropped w-o-w. National Mineral Development Corporation (NMDC), India's largest merchant iron ore mining company, decreased list prices of iron ore calibrated lump ore (CLO) and fines today by INR 600/t($7/t) and INR 500/t ($6/t) with effect from 7 August 2024.

BigMint's weekly Odisha iron ore fines Fe62% index edged down by INR 50/t ($0.6/t) w-o-w to INR 4,450/t ($53/t) ex-mines as on 10 August 2024. Prices remained under pressure and miners offered discounts amid low buying interest and weak sentiments.

Australian premium hard coking coal (PHCC) prices declined by $7/t w-o-w to $223/t CNF Paradip.

16 Aug 2024, 17:36 IST

 

 

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