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India: Primary mills raise rebar prices by up to INR 2,000/t ($24/t) for early-Oct'24 sales

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BigMint Bureau

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4 Oct 2024, 17:35 IST

India: Primary mills raise rebar prices by up to INR 2,000/t ($24/t) for early-Oct'24 sales

IF-rebar prices rise w-o-w

NMDC hikes iron ore prices for Oct'24

Property registrations up in Jan-Sep'24

Indian primary mills have raised rebar list prices by up to INR 2,000/tonne (t) ($24/t) for early-October 2024 deliveries, sources informed BigMint. Post revision, list prices hovered in the range of INR 52,000-53,000/t ($619-631/t) on a landed basis. It should be noted that mills had announced interim price hikes in the previous month.

Following the price hike, trade-level blast furnace (BF) rebar prices stood at INR 52,400/t ($624/t) exy-Mumbai, a rise of INR 1,900/t ($23/t) w-o-w, as per BigMint's assessment on 4 October 2024. Prices are exclusive of GST at 18%.

Meanwhile, demand in the trader's market was weak, which weighed on sentiments last month. Additionally, supply issues continued, stemming from production suspensions at a public sector undertaking (PSU) steelmaker, leading participants to quote higher prices amid shortages in some markets.

In the project segment, prices hovered at around INR 51,000-52,000/t ($607-619/t) FOR Mumbai.

Notably, last month saw primarily need-based procurement.

Factors behind price hike

1. IF-rebar prices rise w-0-w: Induction furnace (IF) route rebar trade offers witnessed an uptrend w-o-w amid improved buying activities and a rise in raw material and semi-finished steel prices across markets. Initially, manufacturers raised their list prices, following which they reduced discounts considering the market scenario. IF-rebar trade prices increased by INR 2,100/t ($25/t) w-o-w to INR 48,500/t ($578/t) exw-Mumbai on 4 October 2024.

On a monthly basis, trade-level IF-rebar prices were up by INR 400/t ($5/t) to INR 45,700/t ($544/t) exw-Mumbai in September. Prices were range-bound during the beginning and the middle of the month but started rising in late September.

2. Raw material prices climb up: National Mineral Development Corporation (NMDC), India's largest merchant iron ore mining company, raised list prices of iron ore calibrated lump ore (CLO) and fines by INR 300/t ($4/t) and INR 400/t ($5/t), respectively, with effect from 1 October 2024, BigMint learnt from market sources.

Similarly, Australian premium hard coking coal (PHCC) prices rose $18/t w-o-w to $221/t CNF Paradip.

3. Property registrations grow in Jan-Sep'24: Property registrations in Mumbai, the country's largest real estate market, registered a rise of 12% y-o-y to 1,05,600 units during the first nine months of 2024 (January-September), as per data released by Knight Frank India.

Property registrations were recorded at 9,100 units in September as against 11,735 units in the month-ago period.

Outlook

Market participants believe that IF-rebar offers will remain supported in the coming days, which in turn will keep BF-rebar prices steady at the current levels, given the ongoing material shortages.