Indian Primary Mills Increase Rebar Offers for Jan'20

Indian primary mills have announced hike in rebar offers by INR 1,000-2,000/MT (USD 14-28) across regions vary for project and retail segment amid strengthening medium scale rebar offers along with improved demand due to certain government initiated policies for infra-structure spending.

It's being reported through trade associates that state owned mills have notified increased sales figures on a monthly basis and few private large mills have reduced rebar production amid amplified export offers in semis products (Billet).

Mills report increased steel sales in Dec'19- Rashtriya Ispat Nigam Ltd (RINL), a corporate entity of Vizag Steel plant has logged highest steel sales volume in the month of Dec for the financial year 2019-2020, SteelMint learnt from market sources. Vizag Steel has achieved a sales volume of around 5.5 lac tonnes, of which 1.2 lac tonnes is attributed to exports.

Steel Authority of India Limited (SAIL) has recorded highest ever monthly sales in Dec'19 as it's sales observed 47% Y-o-Y increase, the company informed in a press release.

Govt. spending to push infrastructure - Further, as per recent reports shows Finance Minister unveiled Rs 102 lakh crore of infrastructure projects that will be implemented in the next five years as part of the government's spending push in the infrastructure sector and there she said Prime Minister Narendra Modi had in his Independence Day speech spoken of investing Rs 100 lakh crore in infrastructure.

Hike in rebar offers from secondary mills - Another factor could be considered for price hike among large scale mills is narrowing price gap between large & medium scale mills where rebar price difference observed almost remain zero and medium scale mills predominantly crossed large mills prices in few specified regions and one of the major factor is declining inventory levels at state owned mills premises, as analyzed by SteelMint.

For instance, in Chennai, Southern India current rebar price shows at INR 35,900-36,300/MT through the medium/small scale mills, whereas large mills rebar offers was at INR 35,500-36,300/MT, as per last week assessment before increasing finish long steel prices.

Further, west region (Mumbai market) based traders shared that few rebar transactions reported at INR 38,500-39,000/MT in traders market of TATA Steel in retail segment and project prices may vary upon booking quantity and payment terms which shall be around INR 37,500/MT.

JSPL & JSW also increased the offers by around INR 1,000-2,000/MT. Fresh offers of rebar from JSPL stands at 36,000/MT for projects & for retail segment would be at INR 36,750-37,000/MT ex-Angul plant, shared by trade sources.

-- Current rebar offer range reported through trade associates is INR 37,000-37,500/MT ex-Hyderabad, INR 36,500-37,000/MT ex-Chennai & INR 37,000-38,000/MT ex-Mumbai, size 12mm and excluding GST.

-- Current Structure offers assessment registered - Angle 50/6 at INR 40,500/MT and 65 Angle at INR 39,500/MT and Wire Rod 5.5 mm at INR 37,200/MT ex-kalamboli (Mumbai)