Indian mills export rebar to Asia at competitive prices, local market set to recover

Tuesday, 23 February 2021 15:33:12 (GMT+3)   |   Kolkata
       

The local Indian rebar market has started showing a recovery over the past week with both primary and secondary producers increasing their prices to offset higher input costs and with tentative signs of support from some sellers successfully concluding export contracts, SteelOrbis has learned from trade and industry circles on Tuesday, February 23.

The sources said that, even as resistance from key buyers like builders is being sustained, producers have been seen to be increasing their prices in “small doses” in view of higher input costs, particularly rising scrap prices in the case of secondary rebar producers. According to the sources, integrated steel mills have increased rebar prices by INR 750/mt ($10/mt) to INR 49,250-49,750/mt ($679-686/mt) ex-works. Secondary mills have increased prices by around INR 1,500/mt ($21/mt) to around INR 48,500/mt ($669/mt) ex-works.

From the sellers’ point of view, sentiments have received a slight boost with reports of successful conclusion of rebar export trades since early this month, particularly from renewed interest from buyers in Asia and neighboring countries like Nepal and Bangladesh, trade circles said. Indian exporters have been able to provide the most competitive prices for Asian buyers recently, trying to deal with stocks and while the local market has been weak.

The sources said that an eastern India-based steel mill has concluded an export trade to Hong Kong at around $625/mt CFR on actual weight basis, which translates to about $600/mt FOB and, though the tonnage of the deal could not be confirmed in the market, it is not less than 30,000 mt, sources have said. The latest offers for rebar from India to Singapore have been reported at $600-605/mt CFR on theoretical weight basis, with no deal done.

According to market sources, the price level from India has been much lower in Southeast Asian than from any of the other traditional suppliers. For instance, the current tradable value for Turkish rebar to Hong Kong would not be below $660/mt CFR on actual weight basis, according to sources, amid higher scrap costs, while offers are rare and higher than that. In Singapore, the tradable value for rebar from traditional sellers, like China or Turkey, is assessed by import sources at around $625-635/mt CFR on theoretical weight basis, but offers are not below $640/mt CFR and are up to $660/mt CFR Singapore.

Several smaller-tonnage trades ranging at 15,000-20,000 mt of Indian rebar were reported to buyers in Nepal and Bangladesh, which sources said averaged at $595-610/mt FOB for higher thermo-mechanically-treated rebars.

$1 = INR 72.50


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