Indian Secondary Mills Raise Rebar Offers Amid Strengthening Raw Material Prices

Indian secondary mills have increased rebar offers by around INR 400-1,200/MT (USD 6-17) W-o-W. The medium scale mills rebar demand in India improved slightly amid strengthening raw material prices.

However, it is being observed that since last couple of days' finish long steel sales have been slightly weak as stockiest seem cautious before making advance bookings at current prices and are focusing largely to clear pending logs.

Meanwhile it is being mentioned that the rebar prices won't get any major correction as raw material prices are continued strong from iron ore to melting scrap in specified major regions. Domestic scrap prices in Mumbai have increased by INR 300-400/MT W-o-W. Also semi-finished steel prices have witnessed increment. SteelMint's Mumbai billet price assessment moved up by INR 600-700/MT W-o-W.

Also it is analyzed that, industrialists are seeking considerable future bookings which has been affected from last 2-3 days and inappropriate buying inquiries may urge them to float discount levels up to certain levels.

Further, the country's largest and state owned lender (SBI) came up to secure buyers dream i:e; finance guarantee scheme under which principal amount will be refunded by lender if project is getting delayed from builder's end within time frame till the occupation certificate is procured by the builder named 'Residential builder finance guarantee scheme' particularly for three projects in Mumbai market and will expand later on to revive real estate sector.

-- Current rebar trade reference prices by mid scale mills hovering at INR 34,300-34,600/MT ex-Raipur, INR 34,900-35,300/MT ex-Durgapur, INR 36,500-36,900/MT ex-Jalna & INR 35,800-36,200/MT ex-Chennai, Grade- Fe500, excluding 18% GST & size 12 mm.

Trade Updates (Rebar 12 mm)

-- Rathi Steels based in North region is current offering at INR 37,900/MT.

-- Muzzaffarnagar based Sarvottam Rolling Mills Pvt. Ltd.(Paras TMT) is current offering at INR 35,600/MT.

-- Raipur based Real Ispat (GK TMT) has unchanged their offer at INR 36,700/MT.

-- Raigarh based Anjani Steels Ltd. (Radhe TMT) is offering at INR 35,200/MT(up by INR 200/MT).

-- Jalna based Kalika Steels Alloys Pvt. Ltd.(Kalika TMT) is current offering at INR 36,700/MT

-- Jalna based Gajkesari Steels and Alloys Pvt Ltd.(Gajkesari TMT) has unchanged their offer at INR 36,400/MT.

-- Gujarat based, Mono Steel (India) Ltd.(Mono TMT) has unchanged their offer at INR 38,800/MT FoR.

-- Chennai based Kamachi Industries Ltd. (KAMACHI TMT) is offering at INR 37,500/MT.

Note- All prices are basic & excluding GST, subject to re-confirmation.