Local Indian rebar traded prices have showed all-round declines and deep discounting amid rising inventories and thin trading activity, with primary producers joining the trend of resorting to discounts to stem high mill-end stocks, SteelOrbis learned from trade and industry circles on Tuesday, September 14.
Trade discounts have been heard in the range of INR 1,000-1,500/mt ($14-20/mt) around the western regional market of Mumbai and deeper discounts of INR 2000-2500/mt ($28-34) in the central region around Raipur.
Net of discounts, traded prices ex-Mumbai have ranged at INR 48,000-49,500/mt ($652-673/mt) ex-warehouse, while ex-Raipur prices were reported at lows of INR 46,000-47,500/mt ($625-645/mt) ex-warehouse, sources said.
Integrated steel mills have maintained prices at INR54,000-55,000mt ($734-747/mt) ex-works, but most market participants said that listed prices had become ‘largely notional’ as most mills were offering deep discounts as high as INR 2,000-3,000/mt ($28-41/mt) across the board and not necessarily linked to volume bookings.
“Spot trading activity is at a very low level. Secondary mills have no option but to increase discounts as inventories are building up very fast. Large projects too seem to be deferring fresh bookings and integrated mills are also facing inventory build-ups and pressures on prices,” a Kolkata-based distributor said.
“The softening trend in billet prices is a positive. But this has to gain momentum further to widen conversion spreads to rebar and improve per mt realizations at current rebar prices,” he added.
$1 = INR 73.60