Indian primary mills roll over rebar list prices for early-November

Indian primary steel mills have rolled over list prices of rebar m-o-m for early-November sales, sources informed SteelMint. Post revision, effective prices stand at:

• Jindal Steel and Power Ltd (JSPL): INR 58,000/t ($704/t), ex-Delhi
  
  
• Tata Steel: INR 56,000/t ($685/t), ex-Delhi
  
  
• JSW Steel: INR 57,500-58,000/t ($703-709/t), ex-Mumbai
  
  

Prices are exclusive of 18% GST.

Factors keeping prices unchanged

1. Slow demand in October: Buying interest for BF-route rebar remained weak in October as buyers moved to the sidelines amid festive holidays. Moreover, prices remained rangebound last month with limited restocking activities in the distribution network due to rising inflation.

In addition, ban on construction and demolition activities in north India to maintain air quality kept market activities muted.

2. Moderate demand from housing sector: Demand from housing sector too remained slow during the month. Registration of properties in Mumbai municipal region, India's biggest housing market, stood at 8,276 units in October, down 3% from the year-ago period, as sales momentum moderated despite festive demand.

3. IF rebar trade prices fall: IF-route rebar (12-25mm, Fe 500, IS 1786) prices stood at INR 54,000/t ($655/t) exw-Mumbai as on 3 November compared with the monthly average of INR 55,600/t ($675/t) in October, as per SteelMint.

Moreover, the gap between IF/BF-route rebar prices continued to contract further to around INR 800/t ($10/t) in October.

4. Drop in raw material costs: Prices of steelmaking raw materials such as iron ore lump have declined in October. SteelMint's weekly Odisha iron ore lump (10-30 mm, Fe 60%) index has dropped by m-o-m to a monthly average of INR 4,710/t ($57/t) in October from INR 4,825/t ($59/t) in the previous month.