India: Primary Mills Report Improvement in Rebar Demand from Projects

Indian primary mills have observed better demand in rebars specially from project segment. Hence inventory levels have slightly narrowed down, which was quite healthy during the past two quarters of FY20.

SteelMint in conversation with one of India's major private steel producer learned that, rebar demand is better now from projects, thus healthy bookings have been received and average price range reported at near to INR 33,500/MT ex-works in western India.

However it is being reported that state owned producers in south, east & central regions are offering material at lower offers due to more than the average inventories. Thus despite better demand, scope for price rise is limited immediately and expectations are less for further drop in prices.

Also few of sources believe that, prices to get strong for Nov'19 deliveries, if demand remains supported for the remaining days of Oct'19.

SteelMint's price assessment for large scale mills rebar stood at INR 33,800-34,200/MT ex-Mumbai/Ahmedabad/Chennai, INR 33,000-33,500/MT ex-Durgapur & INR 33,800-34,400/MT ex-Delhi. The prices are excluding 18% GST & ex-stock yard basis.

Inline, Wire rod (SAE 1008, 5.5-6.0mm) offers are assessed at INR 34,000/MT ex-Mumbai/Jharkhand & INR 34,200-34,800/MT ex-Chennai. The prices are excluding 18% GST & ex-stock yard basis.