India: Secondary Mills Raise Rebar Offers on Improved Inquiries

Indian medium scale rolling mills in major supplying regions have slightly raised their rebar offers by INR 100-300/MT today amid an improved movement in particular locations.

While considering weekly assessment, rebar prices have been moved down by around INR 300-600/MT in central region (Raipur/Raigarh) and western region based (Mumbai/Jalna) markets and on the other hand prices in north & southern regions remained slightly fluctuating with no major changes.

However, few market participants believe that the slight improvement could sustain in near term only as approaching festive season may result mesured demand. Also the price range may not be sustain for long term due to excess supply along with acute shortage of liquidity and delayed payment cycle is getting normal in overall regions and retailers are asking for elongating credit days but re-rollers are not willing to provide or accept with enough credit days.

Overall rebar market observed limited trades with not more than of 3-5 days bookings, depending upon locations and till then selling pressure won't get sufficient burden to the industrialists.

Further, festive season (Diwali) is approaching and prior to festival construction activities to speed up with prospective assumption of completion stage due to absence of workers which is generally exist post festive holidays, shared by few traders based in northern India.

Current Rebar (12-25 mm) trade reference prices registered at INR 29,800-30,000/MT Ex-Raipur, INR 30,500-30,700/MT Ex-Jalna & INR 31,200-31,500/MT Ex-Chennai.

Trade Updates (Rebar 12 mm)

-- Rathi Steels based in North region has unchanged their offers at INR 32,800/MT.
-- Raipur(Central region) based Real Ispat (GK TMT) has unchanged their offers at INR 32,200/MT.
-- Raigarh(Chhattisgarh) based Anjani Steels Ltd. (Radhe TMT) is currently offering at INR 30,400/MT.
-- Jalna based Rajuri Steel Pvt. Ltd. (Rajuri TMT) is offering at INR 30,800/MT(up by INR 100/MT)
-- Jalna based SRJ Peety Steels Pvt Ltd (Shree Om) is offering at INR 30,900/MT(up by INR 200/MT).
-- South region Chennai based Ponneri Steel Ind. (Triple Power) is currently offering at INR 31,700/MT.

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