Indian Secondary Rebar Market Continues to Witness Weak Demand
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Indian secondary rebar demand remains weak amid dull sentiments, hence the participants are in 'wait & watch' mode for clear market direction to get sufficient trade volumes.
Further it's being observed that in central region (which contributes the major share of secondary rebar production) the mills are operating below production capacity over fluctuation in raw material (ingot/billet) prices across regions.
However, rebar prices have improved a couple of days ago, on account of GST check points in North region, Punjab to prevent unaccountable transactions and shortage of scrap has been notified along with improved rebar guage parity in central region (Raipur & Raigarh) markets by INR 500/MT.
Similar trends have been observed in western India - Wardha market where same price parity improved i:e; INR 500/MT and new parity reported at INR 3,000/MT for 10-25 mm & INR 4,000/MT for 8 & 32 mm.
However, as per weekly assessment, the rebar price range has been improved in most of the locations i:e; INR 200-800/MT and specified regions like east and south region marked fall of INR 200-500/MT.
Further the future trends seem optimistic. Few industrialists and trade associates believe prices shall improve, while remaining hope to get minor correction due to sufficient inventory with most of the re-rollers.
-- Current rebar trade prices by mid sized mills is hovering at INR 33,100-33,300/MT ex-Raipur, INR 32,800-33,200/MT ex-Durgapur, INR 35,600-35,900/MT ex-Jalna & INR 34,800-35,200/MT ex-Chennai, Fe500, excluding 18% GST & size 12mm.
Trade Updates (Rebar 12 mm)
-- Rathi Steels based in North region is current offering around INR 36,400/MT.
-- Raipur based Real Ispat (GK TMT) is offering at INR 35,400/MT (down by INR 200/MT).
-- Raigarh based Scan Group branding (Shrishti TMT) is offering at INR 33,600/MT (down by INR 200/MT).
-- Jalna based Bhagyalaxmi Rolling Mill Pvt Ltd (Polaad TMT) has unchanged their offers at INR 36,000/MT.
-- Gujarat based, Mono Steel (India) Ltd. (Mono TMT) is current offering at INR 37,100/MT FoR.
-- Chennai based ARS Steel (Trusteel - 550D) is current offering at INR 37,500/MT.
Note- All prices are basic & excluding GST, subject to re-confirmation.
