India: Rebar Demand in Secondary Market Remains Thin

Rebar trade volumes in Indian secondary market remained thin amid slow movement leading to selling pressure. This has resulted fall in price range by INR 200-300/MT, day on day basis.

Following subdued demand, the mills have adjusted production which is around 70-75% in one of the key supplying markets - central India (Raipur) and inventory levels varied in plants by 10-15%, SteelMint observed in conversation with mill owners.

Western region based market participants stated that, demand is not healthy due to weak construction activities along with absence of workers post the Holi festival.

However they also added that, sharp correction in prices may be limited as stock levels are not high and varies by 15-20% above the average levels.

Meanwhile in South & Northern regions, the mills are maintaining healthy trade discounts of around INR 500-1,000/MT to clear up the piled up inventories and to consider sufficient trade volume with traders & retailers.

Trade Updates (Rebar 12 mm)

-- North region based Rathi Steels is offering around at INR 39,200/MT, Ex-Delhi.

-- Central region, Raipur based - SPEED TMT has slightly reduced their prices by INR 200/MT to INR 36,100/MT.

-- Gujarat based, Mono Steel (India) Ltd. (Mono TMT) currently offering around INR 39,100/MT FoR.

-- Jalna based SRJ Peety Steels Pvt Ltd (Shree Om TMT) has offered at INR 37,900/MT.

-- Jalna based Rajuri Steel Pvt Ltd (Rajuri TMT) currently being offered at INR 37,800/MT.

-- Wardha based in Mahalaxmi TMT is currently offers at INR 36,300/MT.

-- Chennai based ARS Steel (ARS 500 D) has unchanged their offers at INR 40,400/MT.

Note - Prices mentioned above are ex-work, excluding GST & changes are day basis.