Indian mills raise rebar export offers, further hike on anvil

Indian rebar export offers witnessed a significant rise this week. Mills raised their rebar export offers w-o-w by around $15/tonne (t), as per SteelMint reports. The offers for the BF-route rebar (10-40mm, B500B) were heard at around $750-755/tonne (t) CFR Hong Kong on an actual weight (AW) basis. However, no rebar export booking has been reported recently.

SteelMint's last assessment on 21 Jan'22 for BF-route rebar (10-40mm, B500B) stood at $730-740/t CFR Hong Kong on an actual weight (AW) basis. Considering this, Indian rebar export offers rose by around $15/t, w-o-w and $45/t on a monthly basis.

Factors behind rise in offers

• Hike in Indian domestic rebar offers on cost push: Hike in domestic rebar offers ensured the hike in rebar export offers. Jindal Steel and Power Ltd (JSPL) further raised rebar prices by INR 1,200/t ($16/t), sources informed SteelMint. Effective prices stand at INR 58,500-59,000/t ($780-787/t) for end-Jan'22 sales, delivered Delhi basis, excluding GST at 18%.
  
  
• Coal prices surge: Improved domestic demand along with cost push amid soaring coal prices resulted in the price hike, SteelMint understands. Prices for Australian premium low-volatile hard coking coal (HCC) have hit a record high of $445/t FOB Australia on 27 Jan'22. Prices have risen by $20/t w-o-w.
  
  
• Higher global offers: Turkey-based mills are learned to have further lifted rebar export offers this week by around $10/t, w-o-w amid higher costs, limited supply due to production cuts and natural gas supply constraints impacting steel production.
  
  

Outlook

It is expected that a further hike of $5/t in Indian rebar export offers may be seen shorty, given the continuous price rally in domestic and overseas markets.