India: Rebar export prices drop to 2-month low on weak demand

Indian rebar export prices have continued to exhibit a southward momentum amid weak demand from key importing nations. Rebar prices in India have fallen to around two-month-lows, as per data maintained with SteelMint.

Export prices of BF-route rebar (B500B) currently stand at $705-710/t CFR Hong Kong on actual weight (AW) basis, a drop of around $10/t, w-o-w and also a sharp fall of $60/t m-o-m.

A major Indian steel mill recently concluded an export deal for one parcel of rebar (BF route, B500B) to Hong Kong, sources informed SteelMint. The steel mill achieved a price level of $705-710/t CFR Hong Kong on actual weight (AW) basis.

Also, a Middle East-based steel mill sold 50,000 t of rebar to Hong Kong recently.

Lower bids and drop in coal prices have resulted in a decline in rebar import prices in markets like Hong Kong and Singapore.

Indian rebar exports fall significantly in Oct'21

India registered a significant 67% m-o-m fall in its rebar exports in Oct'21. The volumes stood at 44,372 tonnes (t) in Oct'21 as against 124,190 t in Sep'21, as per customs data collated by SteelMint. Cost-effective offers from the Middle Eastern countries and limited export bookings have kept Indian rebar exports on the lower side.

Outlook

Falling rebar export prices from India are likely to weigh down domestic rebar prices. Rebar export price realisations on FOB basis currently stand at INR 50,500-50,600/t. On the other hand, domestic rebar (BF route, exy-Mumbai) prices stand at INR 59,000/t which are comparatively quite high.

Indian mills are likely to announce long steel prices for Dec'21 shortly and market sources are expecting a correction in the near term owing to a decline in raw material prices and subdued buying.