Indian Primary Mills Hike Rebar Offers

Indian large scale mills have raised rebar offers by INR 500-750/MT across markets and this is the second price hike in Jan'20 deliveries. Prior to this the mills had announced hike in offers by INR 1,500-2,000/MT in the beginning of Jan'20.

As per trade sources report the state owned SAIL (Steel Authority of India Limited) has raised rebar offers today by INR 500/MT across regions.

Also few private large mills like - JSW & TATA Steel have increased rebar offers by INR 500-1,000/MT which will be effective from 13 Jan'20, as mentioned by close sources of the company.

The main factor attributed towards price hike is limited gap between large scale mills and medium/small scale mills which is currently hovering at INR 500-1,000/MT ex-Mumbai considering price range for project works by large scale mills.

In addition, falling inventories with major mills among large scale premises specifically with south region based state owned mill and west India based private large mill where supply movement is considerably slow to the distributors i.e. retail segment amid healthy future bookings for project supply.

Further as per them, southern India based state owned RINL (Vizag Steel) are planning to raise rebar offers in the same range considering their competitive prices. But revision is awaited as market participants seems not much active properly for finish steel transactions amid upcoming festival (Pongal), shared by trade associates.

Thus, the traders/stockiest are ultimately taking advantage and are selling material at premium of INR 1,000-1,500/MT due to slow offtake from large mill premises along with an assumption of further increase in price range for long steel products which might get announced in near term depending upon trade sentiments.

-- Current rebar offers through the large scale mills assessed at INR 38,000-38,500/MT, Ex Mumbai (Size 12 mm), Grade ISI 500 D, excluding GST 18%.