On June 15, SteelOrbis reported that the Indian domestic rebar price from medium sized mills for rebar in the ex-Durgapur (eastern India) and ex-Raipur (central India) markets reportedly began to rebound to INR 41,250/mt ($605/mt) in both areas. The price corresponded to 12mm rebar.
Sources inform SteelOrbis that due to limited inquiries, offers on the same grade from medium sized mills have since retreated to INR 39,300-39,700/mt ($571-577/mt) in both regions, with the ex-Raipur pricing on the lower end of the range. In dollar terms, prices decreased by $28-34/mt. A source added that prices in Maharashtra, on the eastern side of India toward Mumbai, are slightly lower than the price stated above at approximately INR 38,600/mt ($561/mt) ex-works excluding GST.
Sources note the further devaluation of the Indian INR against the dollar as an important factor in the market. According to financial analysts, the depreciation was accelerated by the Long-Term Capital Gain Tax (LTCGT), which was instituted in February 2018 and resulted in the outflow of substantial foreign investments, higher oil prices given India’s net import dependence on Iranian oil, and the US-China trade that has resulted in tariffs against Indian steel and aluminum products as well as injected uncertainty in global markets.
A source noted that the devaluation of the INR against the dollar may result in the push for exports of steel goods at a time when buyers are limited.
USD = INR 68.78 (Jun 28)