India: Rebar Prices in Secondary Market Remain Under Pressure on Limited Trades

As per SteelMint's analysis, rebar prices of secondary mills remain under pressure due to lack of spot trades and limited future orders.

The rebar prices of medium and small scale mills have come down by INR 200-1,400/MT W-o-W in most of the locations due to limited trade volumes this week or lack of future bookings as notified among market participants.

Further trade associates are anticipating finish long steel prices might get minor correction due to upcoming festival holidays next week which might impact production & transportation activity. This may result in disturbed supply chain movement.

In a week western region, Gujarat market observed a huge downfall in prices from raw materials to finished steel and the rebar prices noticed sharp fall of INR 1,400/MT in Ahmedabad location where one of the leading rolling mill suddenly dropped down their offers by more than INR 1,000/MT which urged other industrialists to maintain their offers on parallel level to maintain buying inquiries.

Market participants from particular regions like north, central and south reported few trades are happening below official quoting and it varies by INR 300-600/MT with different market locations. Hence its expected that prices may observe limited movement in near term.

-- Current rebar trade prices by mid-sized mills is hovering at INR 32,400-32,600/MT ex-Raipur, INR 32,300-32,700/MT ex-Durgapur, INR 35,500-35,900/MT ex-Jalna & INR 34,700-35,100/MT ex-Chennai, Fe500, excluding 18% GST & size 12mm.

Trade Updates (Rebar 12 mm)

-- Rathi Steels based in North region is current offering around INR 36,000/MT.

-- Muzaffarnagar based Swarup Rolling Mills Limited (Swarup TMT) is offering at INR 33,600/MT (down by INR 100/MT).

-- Raipur based Real Ispat (GK TMT) has unchanged their offer at INR 35,100/MT.

-- Raigarh based Anjani Steels Ltd. (Radhe TMT) is current offering at INR 32,800/MT.

-- Gujarat based, Mono Steel (India) Ltd.(Mono TMT) has unchanged their offers at INR 35,500/MT FoR.

-- Jalna based Rajuri Steel Pvt. Ltd. (Rajuri TMT) has unchanged their offer at INR 36,000/MT.

-- Jalna based Kalika Steels Alloys Pvt. Ltd.(Kalika TMT) is current offering at INR 35,900/MT

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