India: Rebar Demand Improves in Secondary Market; Prices Recover

Indian medium scale mills rebar demand slightly improved from the major supplying regions, hence prices moved up by around INR 200/MT (USD 3), day on day, in across regions.

However on weekly comparison, prices have shown correction of INR 600-800/MT in most of the regions as there was significant drop in prices due to poor off take last week.

Meanwhile in recent conversation with participants SteelMint learned that, the mills are less likely to reduce prices in near term due to hike in raw materials and also to prevent negative conversion spread from Billet to Rebar.

Further in Western region (Maharashtra) based few manufacturers also shared that market sentiments are likely to move on positive direction amid improved movement in rebars.

In addition, Maharashtra (Wada) based specified mills are planning to go for night shift operations only with a prospective view to improve conversion spread and to slow down raw material procurement as Billet prices have been dropped sharply by INR 600-800/MT comparatively slight down fall in scrap by INR 300/MT on weekly basis.

Trade Updates (Rebar 12mm)

-- North region based Rathi Steels current offering at around INR 38,000/MT.

-- Central region, Raipur based - SPEED TMT has unchanged their offers at INR 35,300/MT.

-- Raigarh based Anjani Steels Ltd. (Radhe TMT) is offering at INR 35,700/MT (up by INR 100/MT).

-- Gujarat based Shreeyam Power & Steel Industries Ltd. (National TMT) has unchanged their offers at INR 36,800/MT FoR.

-- Mahalaxmi TMT based in Wardha - Maharashtra is offering at INR 35,500/MT (up by INR 200/MT).

-- Jalna based Rajuri Steel Pvt Ltd (Rajuri TMT) has maintained their offers at INR 36,700/MT.

-- Jalna based Kalika Steels Alloys Pvt. Ltd. (Kalika TMT) has unchanged their offers at INR 36,700/MT.

-- Chennai based Ponneri Steel Ind. (Triple Power) has unchanged their offers at INR 37,300/MT.

Note - the prices mentioned above are ex-work, excluding GST & changes are placed on day basis & prices are subject to re-confirmation.