India: Rebar Demand in Secondary Market Turns Weak; Prices Fall

Indian secondary rebar market remains depressed over slow demand following weak sentiments across regions.

Meanwhile disturbed construction activities have halted rebar supply movement specifically in south & western India. This has mounted selling pressure with the large as well as medium/small scale producers in domestic market.

As per assessment, the prices have fallen by around INR 1,000-1,300/MT (USD 14-18) in a week and on monthly basis prices have observed decline by around INR 2,000-3,000/MT (USD 28-43) in most of the regions.

It's being learned from most of the trade participants that rebar price range should sustain at these levels in near term as prices have already come down sharply than it was expected.

However looking to margins (conversion spread) it seems that there is some space for further price reduction in rebar as central region, Raipur one of the major supplying market has healthy conversion spread from billet to rebar at INR 4,800/MT and the similar margins marked in western region, Jalna at INR 4,700/MT.

Further it is observed from the associates that, primarly mills are getting better response at prevailing offers from the retailers & projects segment, than the demand with secondary brands, although liquidity issue is still a concern among both segments.

The current trade reference prices registered at INR 33,000-33,200/MT Ex-Raipur & INR 34,500-34,800/MT Ex-Jalna by medium and small scale mills. In line large scale mills, the trade reference prices hovering at INR 39,700/MT Ex-Mumbai & INR 40,000/MT Ex-Delhi. The prices mentioned above for 12mm, excluding GST & ex-works basis.

Rebar Trade Updates (12 mm)

-- Rathi Steels based in North region current offering around INR 36,600/MT (ex-Delhi).

-- Raipur based - SPEED TMT is offering at INR 33,300/MT (down by INR 400/MT).

-- Real Ispat (GK TMT) is offering at INR 35,500/MT (down by INR 500/MT).

-- Raigarh based Anjani Steels Ltd. (Radhe TMT) is offering at INR 33,500/MT.

-- Gujarat based Shreeyam Power & Steel Industries Ltd. (National TMT) is offering at INR 35,300/MT FoR.

-- Gujarat based Diamond TMT is current offering at INR 35,100/MT FoR.

-- Jalna based Bhagyalaxmi Rolling Mill Pvt Ltd (Polaad TMT) has unchanged their offers at INR 34,900/MT.

-- Jalna based Rajuri Steel Pvt Ltd (Rajuri TMT) has maintained their offers at INR 34,800/MT

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