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India: Tier-1 mills raise rebar list prices by up to INR 1,000/t ($12/t)

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BigMint Bureau

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27 Sep 2024, 17:34 IST

India: Tier-1 mills raise rebar list prices by up to INR 1,000/t ($12/t)

IF-rebar prices rise w-o-w

Iron ore, coking coal prices rise

Indian tier-1 mills have increased rebar list prices by INR 500-1,000/tonne (t) ($6-12/t) for end-September 2024 deliveries, sources informed BigMint. Post-revision, list prices hovered in the range of INR 50,500-52,000/t ($603-609/t) on a landed basis.

Following this, trade-level blast furnace (BF) rebar prices rose by INR 500/t ($6/t) to INR 50,500/t ($603/t) w-o-w exy-Mumbai, as per BigMint's assessment on 27 September 2024. Prices are exclusive of GST at 18%. Supply issues from a public sector undertaking (PSU) steelmaker continued to persist in the market, leading participants to quote higher prices amid ongoing shortages in some markets.

In the project segment, prices hovered at around INR 49,000-50,000/t ($586-597/t) FOR Mumbai. Buying activities in the projects segment were need-based only.

Factors behind increase in prices

1. IF-rebar prices rise w-o-w: Induction furnace (IF) route rebar trade prices witnessed uptrend w-o-w amid improved buying activities and rise in semi-finished steel prices across markets. Manufacturers raised their list prices. However, they went on to reduce discounts considering the market scenario. Raw material and semi-finished steel prices also increased w-o-w amid good demand. IF-rebar trade prices increased by INR 1,200/t ($14/t) to INR 46,400/t ($554/t) w-o-w exw-Mumbai as on 27 September 2024.

The price gap between BF-IF rebars stood around INR 4,500-5,000/t ($54-60/t) in the Mumbai market. Notably, IF rebars enjoy a 65-70% share of the market.

2. Raw material prices up w-o-w: Prices of key steelmaking raw materials, iron ore and coking coal rose w-o-w.

BigMint's weekly Odisha iron ore fines Fe62% index increased by INR 300/t ($4/t) to INR 4,500/t ($54/t) w-o-w ex-mines as on 21 September. The region faces a shortage of high-grade iron ore fines due to monsoon-related production disruptions, prompting buyers to actively secure raw material inventory through the Odisha Mining Corporation's (OMC's) auction.

Australian premium hard coking coal (PHCC) prices rose by $7/t to $203/t w-o-w CNF Paradip.

3. Infrastructure, construction demand: India's national highway construction for August showed an addition of 427 km against 526 km in the corresponding period of last year (CPLY).