BigMint is a Market Intelligence and Price Reporting firm that caters to the data and analytics requirements of businesses in the commodities sector. It publishes real time prices and information, which is impartial, independent and reliable, sourced from all industry interfaces – sellers, buyers, agents and traders. This data is filtered and passed through very stringent, calculative assessments before final prices are derived, thereby giving our clients accurate pricing.

Go to List

India: Will Primary Producers Hike Rebar Offers in May?

...

Finish long

BigMint Bureau

679 Reads

29 Apr 2019, 16:29 IST

India: Will Primary Producers Hike Rebar Offers in May?

Indian rebar offers from major primary mills had rallied since last couple of months, however it would be interesting to see whether it will continue in the month of May'19 too?

The current trade reference rebar (12mm) prices of large mills is evaluated at around INR 41,000-41,500/MT Ex-Mumbai/Chennai & INR 41,500-42,000/MT Ex-Delhi, excluding 18% GST.

As per recent conversation with market participants, SteelMint learned that, the large mills may roll-over rebar prices or slightly adjust their prices as per market demand in May'19.

They mentioned that, demand is slightly depressed from retail segment among distributors since the elections are ongoing in the country. However average supply in projects has sustained the price level as inventories are slightly low in particular regions which could be the considerable factor to maintain current price range in May'19.

Meanwhile, appropriate price gap in rebar between large & medium mills, also indicates them for sustained price range by the large scale mills in May'19. The current rebar price gap between them is hovering at INR 4,000/MT Ex-Mumbai, INR 3,500/MT Ex-Chennai & INR 3,800-4,000/MT Ex-Delhi, which is on comfort zone, as per industry experts who largely deals with large mills.

Which factors may force mills to cut offers?

Medium/small scales mill have already corrected rebar prices in most of the regions by around INR 500-1,000/MT (USD 7-14) M-o-M in Apr'19 and it's being assumed among medium scale mills that slight corrections might further get place to maintain the stock levels in major supplying locations but liquidity issue is still a concern. This may remain a major concern for large mills rebar demand too for retail segment.

Rising rebar production amidst sustained or below to average demand. India's total rebar production level including large mills and medium scale mills has been registered at 2,343,000 MT in Mar'19, which has increased by 27.4% against 1,839,000 MT in Feb'19, as per JPC report maintained by SteelMint.