India: BF-rebar trade prices exhibit mixed trends w-o-w amid low demand
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Indian blast furnace (BF) rebar trade prices witnessed mixed trends across markets during the week. Demand in the distribution channel network remained low which weighed on the market sentiments.
A leading PSU steelmaker raised rebar prices by INR 1,500/t ($18/t) earlier this week due to constrained supply, as the company is currently running only one BF, BigMint learnt from market sources. Furthermore, this resulted in slight uptick in rebar trade prices across markets in the southern part of the country.
As per BigMint's assessment on 20 September 2024, rebar prices dropped by INR 600/t ($7/t) w-o-w to INR 50,000/tonne (t) ($599/t) exy-Mumbai. Prices are exclusive of GST at 18%.
In the project segment, prices hovered around INR 48,500-49,500/t ($581-593/t) FOR Mumbai. Buying interest remained limited amid need-based procurement.
Factors behind market dynamics
1. IF-rebar prices rise w-o-w: Induction furnace (IF) route rebar trade prices witnessed uptrend on w-o-w across major markets. Manufacturers increased list prices by INR 500-1,000/t ($6-12/t) across markets and slight improvement in buying activity was observed. Meanwhile, they also offered discounts based on the market scenario. Mills have adjusted their production by around 20-25% amid rising inventories, which were in the range of 12-15 days across markets. Prices of semi-finished steel witnessed increase w-o-w amid moderate buying. IF-rebar trade prices dropped by INR 400/t ($5/t) to INR 45,200/t ($541/t) w-o-w exw-Mumbai.
The price gap between BF-IF rebars stood around INR 4,500-5,000/t ($54-60/t) in the Mumbai market. Notably, IF rebars enjoy a 65-70% share of the market.
2. Raw material prices stable w-o-w: Prices of key steelmaking raw materials, iron ore and coking coal, remained largely stable w-o-w.
BigMint's weekly Odisha iron ore fines Fe62% index remained stable w-o-w at INR 4,200/t ($50/t) ex-mines as on 14 September. Prices were stable w-o-w due to limited trading activity and material availability concerns.
Australian premium hard coking coal (PHCC) prices edged down by $1/t w-o-w to $196/t CNF Paradip.
Outlook