Indian bulk rebar exports fall marginally in Feb 2018

Indian bulk rebar exports have slightly shrunk to 1.53% with 68,310 MT in Feb'18 as against 69,370 MT in Jan'18, as per the vessel line up data maintained by SteelMint Stats.

The drop in export of rebar can be attributed to a number of factors including higher prices and better margins in the domestic market along with optimistic sentiments supported by strong trade activities. On the other hand offers for export have also been low as opposed to previous months leading to a dip in rebar export.

Large scale producers raised prices of finish long steel products, compelling small scale producers to follow similar price patterns. This in turn has made the domestic market a more lucrative avenue as compared to exports. Whereas average domestic rebar prices of Jan and February are stable with INR 38,700/MT by medium/small scale producers based in Chennai, considered major sources for rebar exports from India.

According to medium mills based in Chennai - South India, during Feb 2018 the export buying interest for rebars was at close to USD 580-585/MT FoB India from South-East nations. However, at the same time domestic trades were made at INR 38,500-39,000/MT (USD 592-600) ex-mill. Meanwhile, the large scale producers have traded rebars at around INR 43,500-44,000/MT/MT (USD 669-677) ex-works.