India: Rebar Prices of Secondary Mills Plunge Owing to Weak Demand

Secondary rebar mills have continued to lower their offers in line with market requirements on account of limited buying inquiries from retailers. As per SteelMint assessment, offers have plunged by INR 600-2,000 (USD 8-27)/MT, W-o-W.

Market uncertainty and progressive decline in finished steel prices engrossed trade associates to be cautious for future bookings. Considering existing stock level, they are is no hurry to book any volumes, shared market sources.

Further, few traders shared that sales volume slashed by 20-30% on a monthly basis and the existing trade discount is not attracting buyers. Buyers are eyeing to book at their prospective price range which is less by INR 400-500/MT compared to current offers.

Another factor which could affect finish steel prices in particular locations likewise south and west market is competitive landed cost of semi finish & finish steel products from central India, which is cheaper by INR 600-1,400/MT than the offers through the local suppliers in respective regions.

-- Current trade reference 12-25 mm rebar offers by secondary (mid scale) mills are hovering at INR 31,000-31,200/MT ex-Raipur, INR 30,600-31,000/MT ex-Durgapur, INR 35,200-35,600/MT ex-Jalna & INR 34,700-35,100/MT ex-Chennai, for Grade- Fe500 & excluding GST.

Trade Updates (Rebar 12 mm)

-- Muzaffarnagar based Swarup Rolling Mills Limited (Swarup TMT) is current offering at INR 31,200/MT.

-- Raipur based Real Ispat (GK TMT) has unchanged their offer at INR 33,600/MT.

-- Raigarh based Anjani Steels Ltd. (Radhe TMT) is current offering at INR 31,200/MT.

-- Jalna based Rajuri Steel Pvt. Ltd. (Rajuri TMT) has unchanged their offer at INR 35,700/MT

-- Gujarat based Vinayak TMT Pvt. Ltd. is current offering at INR 34,100/MT.

-- Chennai based ARS Steel (Trusteel - 550D) is current offering at INR 38,000/MT.

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