India: Rebar Demand in Secondary Market Remains Subdued
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Rebar demand with mid sized mills remained slightly dull in major markets whereas particular locations of central and north-east regions observed minor improvement in price range amid hike in raw materials i.e. sponge/billet prices.
Meanwhile as per few mills in central region, Raipur - trade activities remained slow due to limited buying inquiries since from beginning of week amid existing stock levels. However they are not willing to raise discounts level apart from INR 300-400/MT, as they have to maintain conversion spread along with strengthening raw material prices.
It should be noted that prevailing conversion spread from billet to rebar is not up to the mark and hovering at around INR 3,600-3,700/MT for hot charging mills & for standalone mills it stood at around INR 4,000-4,100/MT, Ex-Raipur.
Whereas in western region market sentiments are weak to average levels where trade activities are limited in Maharashtra/Gujarat and participants are assuming minor corrections for near term.
In southern India, the manufacturers have shared that low finish steel demand and limited sales has dropped the price range by INR 400-500/MT in rebars & around INR 1,000/MT in Semi finish(Billet), although they are assuming minor amendments for specific term.
Trade Updates (Rebar 12 mm)
-- North region based Rathi Steels current offering at around INR 38,500/MT.
-- Central region, Raipur based - SPEED TMT prices unchanged at INR 35,700/MT.
-- Real Ispat (GK TMT) is current offering at INR 38,000/MT (up by INR 200/MT).
-- Raigarh based Anjani Steels Ltd. (Radhe TMT) has unchanged their offers at INR 35,700/MT.
-- Jalna based Kalika Steels Alloys Pvt. Ltd. (Kalika TMT) is current offering at INR 36,900/MT.
-- Jalna based SRJ Peety Steels Pvt Ltd (Shree Om TMT) is offering at INR 37,000/MT (down by INR 200/MT).
-- Jalna based Rajuri Steel Pvt Ltd (Rajuri TMT) has maintained their offers at INR 36,900/MT.
-- Mumbai based Vistar Metal Ind. Pvt. Ltd. (Vistar TMT) is current offering at INR 36,900/MT (down by INR 500/MT).
-- Chennai based Sakthi Ferro Alloys India Pvt. Ltd. (SSI TMT) is currently offering at INR 38,000/MT.
Note - Prices mentioned above are ex-work, excluding GST & changes are placed on day basis & prices are subject to re-confirmation.
