India: Rebar Offers in Secondary Market Inch Up on Improved Trades

Indian secondary rebar market observed decent trade volumes in most of the locations since couple of days and the prices moved up by INR 100-300/MT across regions, which is also backed by improving billet prices.

However on weekly comparison rebar prices fluctuated by around INR 100-300/MT over average supply movement & trade volumes as well.

The trade activities in northern region remain negatively affected due to ban in construction activities till 9th Dec'19 as notified in NGT circular. Further, the participants are anticipating, if climate doesn't improve with existing steps then the ban will continue in coming months.

Meanwhile, in central region few re-rollers shared that over sufficient stock few mills opted for shut down due to slow lifting and lack of bookings. Although, traders have shared that 40-50% stock level has been sold out but poor lifting of material urged them to go for temporary shutdown mills since a week's time.

Further, western region based re-rollers shared that trade logs are good enough, but supply movement exist up to a certain level and price range could get disturbed if same situation persists in coming days.

In southern India, the producers have shared that mills are not fully operational but considering tight supply of raw material in the domestic market may lead to finish steel prices remaining in range bound mode. Since past couple of weeks, prices have remained majorly stable.

-- Current trade reference rebar offers by mid scale mills registered at INR 29,600-29,800/MT ex-Raipur, INR 30,900-31,300/MT ex-Durgapur, INR 31,100-31,400/MT ex-Jalna & INR 31,600-31,900/MT ex-Chennai, Grade- Fe500, excluding 18% GST & size 12 mm.

Rebar Offers by Private Mills (12 MM)

-- Rathi Steels based in North region is offering at INR 33,200/MT (up by INR 200/MT).

-- North region, U.P based - Gallant Ispat Ltd. is current offering at INR 32,200/MT.

-- Raipur based Real Ispat (GK TMT) has unchanged their offer at INR 32,000/MT.

-- Jalna based Rajuri Steel Pvt. Ltd. (Rajuri TMT) is offering at INR 31,300/MT (up by INR 300/MT).

-- Jalna based Bhagyalaxmi Rolling Mill Pvt Ltd (Polaad TMT) is current offering at INR 31,500/MT (up by INR 400/MT)

-- Gujarat based, Mono Steel (India) Ltd.(Mono TMT) is current offering at INR 32,400/MT FoR.

-- Gujarat based Diamond TMT is current offering at INR 32,900/MT.

-- South region based - VRKP Steel Industry Pvt Ltd(VRKP TMT) is current offering at INR 32,100/MT.

-- Chennai based Ponneri Steel Ind. (Triple Power) is offering at INR 32,000/MT.

Note- All prices are basic & excluding GST, subject to re-confirmation.