Indian Long Steel Manufacturers Observe Limited Inquiries

Demand for finished long steel have slightly slowed down upon receiving limited inquiries ahead scheduled union budget announcement which would be presented on 1st Feb'20.

As per trade sources, the stockiest are refraining themselves from the major bookings as there is high demand from the industry association to reduce taxes. As a result, there is no clarity about market trends as it has ultimately affected the trade since last few days.

However, they also mentioned that the industry is assuming a huge investment in the infrastructure sector to revive the economy, however it will be clear post-budget.

Another key factor behind weak demand in Indian market is the trade concerns in global market, where raw material prices are falling rigorously along with drop in billet & scrap prices in global markets on account of uncertainty in situation in China.

The finished steel prices in Indian market remained volatile by INR 200-500/MT through the mid scale mills. However, the producers mentioned that future bookings are limited, if the same situation persists, the mounting selling pressure may impact the prices negatively.

-- Current trade reference rebar offers by mid-scale mills are hovering at INR 33,400-33,600/MT ex-Raipur, INR 34,100-34,500/MT ex-Durgapur & INR 36,000-36,300/MT ex-Jalna, Grade- Fe500, excluding 18% GST & size 12 mm.

Trade Updates (Rebar 12 mm)

-- Rathi Steels based in North region has unchanged their offer at INR 37,400/MT.

-- Muzzaffarnagar based Swarup Rolling Mills Limited (Swarup TMT) is offering at INR 35,000/MT (down by INR 100/MT).

-- Raipur based Real Ispat (GK TMT) has unchanged their offer at INR 35,600/MT.

-- Raigarh based Scan Group branding (Shrishti TMT) is current offering at INR 34,100/MT.

-- Odisha based Bajrangbali Steel Industries Pvt. Ltd. is current offering at INR 33,500/MT.

-- Jalna based Rajuri Steel Pvt. Ltd.(Rajuri TMT) has unchanged their offers at INR 36,000/MT.

-- Jalna based Kalika Steels Alloys Pvt. Ltd.(Kalika TMT) is current offering at INR 36,300/MT.

-- South region Chennai based Ponneri Steel Ind. (Triple Power) is current offering at INR 36,000/MT.

-- South region based - VRKP Steel Industry Pvt Ltd - (VRKP TMT) is current offering at INR 36,800/MT.

Note- All prices are basic & excluding GST, subject to re-confirmation.