India: Trade-level BF-route rebar prices rise w-o-w by INR 500/t ($6/t)

Trade level blast furnace (BF) route rebar prices rose on weekly basis across major markets amid moderate buying activities in the distribution network. A leading primary steelmaker announced a hike in rebar prices by INR 1,000/t ($12/t) earlier this week, marking the second increase during the month.

Current rebar prices in the trade segment increased by INR 500/t ($6/t) w-o-w to INR 57,000/t ($685/t), exy-Mumbai, as per SteelMint's assessment on 15 September, 2023. Prices exclude GST at 18%.

Factors behind price increase:

1. Rebar prices rise in projects segment: Prices in the projects segment are currently hovering at around INR 55,000-55,500/t ($661-667/t) FOR Mumbai basis against INR 54,500-55,000/t ($655-661/t) in the previous week, excluding GST at 18%. Shortage of rebar inventories at yards of mills have lent support to prices which further resulted in improvement in buying activities.

2. Prices of raw materials rise: Prices of key steel-making raw material, iron ore fines (Fe 62%) and coking coal, increased on weekly basis.

SteelMint's weekly Odisha iron ore fines Fe62% index edged upwards w-o-w by INR 1,00/t ($1/t) to INR 4,600/t ($55/t) ex-mines, as on 9 September, 2023. This was the second consecutive week when the index has witnessed a rise owing to limited offers from merchant miners amidst pending dispatches.

Australian premium hard coking coal (HCC) prices rose by $5/t w-o-w to $285/t CNF Paradip as against $280/t CNF last week. Prices rose amid scarcity of material and consistent bids from China.

3. IF-route rebar prices range-bound: Weekly average prices of IF-route rebars edged down by INR 200/t ($2/t) w-o-w to INR 51,800/t ($623/t) exw-Mumbai. Current prices are at INR 51,700/t ($622/t) exw-Mumbai as on 15 September. Buyers procured only on an as-needed basis due to price volatility and limited bookings in the spot market during the week.

The monthly average gap between BF-IF rebars widened to INR 3,500-4,000/t ($42-48/t) in September against INR 2,000-2,500/t ($24-30/t) in the preceding month due to hike in rebar prices by primary steel makers.

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