BigMint is a Market Intelligence and Price Reporting firm that caters to the data and analytics requirements of businesses in the commodities sector. It publishes real time prices and information, which is impartial, independent and reliable, sourced from all industry interfaces – sellers, buyers, agents and traders. This data is filtered and passed through very stringent, calculative assessments before final prices are derived, thereby giving our clients accurate pricing.

Go to List

India: BF-rebar trade prices fall by INR 700/t ($8/t) w-o-w amid limited demand

...

Finish long

BigMint Bureau

62 Reads

23 Nov 2024, 11:39 IST

India: BF-rebar trade prices fall by INR 700/t ($8/t) w-o-w amid limited demand

IF-grade rebars weighed down by inventories

Iron ore, coking coal prices weaken w-o-w

Trade-level blast furnace (BF) rebar prices edged down by up to INR 700/t ($8/t) w-o-w to INR 54,100/t ($641/t) exy-Mumbai, as per BigMint's assessment on 22 November 2024. Prices are exclusive of GST at 18%. The price softening was on account of limited domestic demand and cautious buying sentiment.

In the project segment, prices remained stable w-o-w, hovering at around INR 53,500-54,500/t ($634-645/t) FOR Mumbai.

Factors behind market dynamics

1. IF-rebar exhibits mixed trends w-o-w: The IF-route rebar segment experienced downward price pressures in the first half of the week due to elevated inventory levels. Buyers adopted a cautious approach, purchasing only as needed. To stimulate demand, mills adjusted trade discounts based on payment and delivery terms. However, a slight improvement in prices and trading activity was observed in the latter half of the week, with regional variations. Nevertheless, robust momentum in the IF-route finished segment remains elusive. Meanwhile, IF-rebar trade prices edged up by INR 200/t ($2/t) w-o-w to INR 47,800/t ($566/t) exw-Mumbai.

The price gap between BF-IF rebars stood at around INR 7,000/t ($83/t) in the Mumbai market. Notably, IF rebars enjoy a 65-70% share of the market.

2. Raw material prices downtrend w-o-w: BigMint's Odisha iron ore fines (Fe 62%) index dropped by INR 100/t ($1/t) week-on-week, reaching INR 5,350/t ($63/t) ex-mines as of 16 November 2024. Iron ore prices in Odisha remained under pressure this week, reflecting the ongoing downtrend in the domestic pellet, sponge iron, and steel markets.

Conversely, Australian premium hard coking coal (PHCC) prices edged down by $4/t w-o-w to $218/t CNF Paradip as on 22 November 2024 from $222/t in previous week.

Outlook

The market outlook remains cautious, with limited demand and pricing pressure continuing to affect both rebar and raw material prices. While there are slight improvements in certain segments, the broader market is unlikely to see a strong upward shift in the near term.