Indian Secondary Rebar Market Observes Average Trades
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Indian rebar prices of medium and small scale mills have witnessed consistent improvement. However, it failed to boost the trade volume due to uncertainty future market direction.
As per our assessment, rebar price range has increased by INR 200-500/MT W-o-W in most of the regions except few market where it is marginal down.
Few reliable sources stated that secondary rebar market is having minor selling pressure for specified near term from major supplying regions i.e. central or southern regions.
Further, central region based rolling mills production level has been adjusted by around 60% of the capacity due to dull buying inquiries and stock levels remained considerable high on traders end along with slow off take from neighbouring states as well lack of future bookings.
However from last couple of days western region especially Maharashtra based mill owners have raised their rebar offers by INR 400-700/MT amid increase in raw material (scrap & billet) prices and to maintain the price gap between the nearby states on account of recent change in gauge parity.
In addition, the current conversion spread (margins) between billet to rebar is range-bound and as per assessment, the margins are hovering at INR 3,900/MT Ex-Raipur, INR 5,600/MT in Ahmedabad FoR, INR 4,700/MT Ex-Jalna & INR 4,200/MT Ex-Hyderabad.
The latest rebar offers by mid sized mills are hovering at INR 33,100-33,300/MT ex-Raipur, INR 32,900-33,300/MT ex-Durgapur, INR 36,000-36,300/MT ex-Jalna & INR 34,500-34,900/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 36,700/MT.
-- Muzaffarnagar based Swarup Rolling Mills Ltd (Swarup TMT) is current offering at INR 34,300/MT.
-- Raipur based Real Ispat (GK TMT) is offering at INR 35,600/MT (up by INR 200/MT).
-- Raigarh based Anjani Steels Ltd. (Radhe TMT) is current offering at INR 33,600/MT (up by INR 200/MT).
-- Jalna based Bhagyalaxmi Rolling Mill Pvt Ltd (Polaad TMT) has unchanged their offer at INR 36,400/MT.
-- Gujarat based, Mono Steel (India) Ltd.(Mono TMT) has unchanged their offer at INR 37,200/MT FoR.
-- J.R. Metal Chennai Ltd. is current offering around INR 35,200/MT.
Note- All prices are basic & excluding GST, subject to re-confirmation.
