India: Weak Demand Weighs on Secondary Rebar Price

Rebar market observed slowdown in inquiries in few aspects like new projects or from retail segment which seems to disturbed amid liquidity crunch.

Inventory level remained a major concern among mills despite the adjusted production level across regions and seems to continue for near term due to limited procurement from market participants amid uncertain trade direction as rebar prices drifted down by INR 100-800/MT in most of the region, W-o-W.

However, few industrialists from central & western region are assuming that current prices already on bottom levels and major price contraction is hard to absorb as evolved FDI in equities and debt market which might turn currency into appreciation level and halted infra projects could level up gradually.

Further, south region based particular traders stated that, monthly sales volume slashed below to 50% and not getting appropriate response for payments from contractors end due to lack of reserve fund from central and state government shared by trade source.

Coming to conclusion SteelMint learned that overall scenario of Indian finish long steel industry is not well despite sufficient conversion spread from billet to rebar which is hovering at INR 4,200-4,400/MT ex-Mandi, INR 4,100/MT ex-Raipur, INR 3,600/MT ex-Jalna & INR 4,400/MT ex-Chennai as production level is already adjusted and inadequate supply/demand might get soft correction for near term through medium and small scale mills.

Trade Updates (Rebar 12 mm)

-- Rathi Steels based in North region is current offering 12mm Rebar at INR 33,200/MT.

-- Central region Raipur based Real Ispat (GK TMT) is offering 12mm Rebar at INR 33,300/MT (up by INR 200/MT).

-- Western region Gujarat based Shreeyam Power & Steel Industries Ltd. (National TMT) is offering 12mm Rebar at INR 31,300/MT FoR.

-- Jalna based Bhagyalaxmi Rolling Mill Pvt Ltd (Polaad TMT) offers their 12mm Rebar at INR 31,300/MT(down by INR 300/MT).

Note - Prices mentioned above are ex-work, excluding GST & changes are placed on day basis. Prices are subject to re-confirmation.