Indian Primary Mills Likely to Increase Rebar Prices

Indian large scale mills are planning to increase finish long steel prices for Mar'20 deliveries due to sufficient bookings in existing month. Also, some bookings have been reported for Mar'20, as per our reliable trade sources.

Further, as per our conversation with officials representing different major mills, the rebar prices may inch up by INR 500-700/MT amid scarcity of inventories in few major stock yards and having sufficient buying inquiries for specified projects supply.

However, few stockists based in different regions shared that finished steel demand is not firm as healthy volume was procured in assumption of price hike during current month but buying inquiries were not as good as expected.

Now, with the current circumstances, it might prevent future procurement or could be a concerning factor due to gradual rise in stock level among trade associates for particular market locations and vice versa.

Coming to an overall conclusion, where figures/sales have been marginally improved as per recent report, in which the sale to substantial rated listed real estate developers increased by 2% to nearly INR 5,800 Cr in terms of housing segment during third quarter of this fiscal year and collective sentiments are widely common for upward direction.