India: BF rebar trade prices fall by INR 600/t ($7/t) w-o-w in subdued market

India's trade-level blast furnace (BF) rebar prices dropped w-o-w amid subdued domestic demand and limited buying interest. Additionally, some mills offered rebates/discounts on their list prices, BigMint heard from market sources.

Trade-level BF rebar prices fell by INR 600/t ($7/t) w-o-w to INR 52,400/t ($616/t) exy-Mumbai, as per BigMint's assessment on 20 December 2024. Prices are exclusive of GST at 18%.

In the project segment, prices fell w-o-w to around INR 50,000-51,000/t ($587-600/t) FOR Mumbai amid limited buying inquiries.

Factors behind market dynamics

1. IF rebar prices rise w-o-w: IF rebar trade prices rose w-o-w across markets, with Mumbai witnessing a hike of INR 700/t ($8/t) to INR 47,300/t ($556/t) exw. This followed moderate trading activities during the week. Additionally, manufacturers increased their list prices, but at the same time, they also offered discounts. Another factor supporting rebar prices was a rise in raw material and semi-finished steel tags, which climbed up due to decent buying. Inventory idling time was at around 12 days across markets.

The price gap for BF-IF rebars stood at around INR 5,000-5,500/t ($58-65/t) in Mumbai. Notably, IF rebars enjoy a 65-70% share of the market.

2. Raw material prices edge up w-o-w: BigMint's weekly Odisha iron ore fines Fe62% prices inched up by INR 100/t ($1/t) w-o-w to INR 5,350/t ($63/t) ex-mines on 14 December. The iron ore cluster in Odisha witnessed strong trading activity, driven by fresh offers from miners and improved sentiments for lower-grade fines in the export market.

Australian premium hard coking coal (PHCC) prices edged up by $1/t w-o-w to $217/t CNF Paradip.

Outlook

Market sentiment is likely to remain weak due to a subdued buying pattern, which will likely put pressure on trade prices in the near term.