On August 7, SteelOrbis reported that small to medium-sized mills in India were beginning to increase domestic rebar prices, taking advantage of the large price gap between the prices from the larger mills and the smaller mills.
Offers on 12mm rebar were reportedly at INR 36,500-37,000/mt ($532-539/mt) ex-works in the Raipur (east central India; in the state of Chhattisgarh) and INR 37,000-38,000/mt ($539-554/mt) ex-works in the state of Maharashtra (western India) area.
Sources inform SteelOrbis that ex-Raipur prices “suffered a small correction in the interim but are now up again” and are now reportedly at INR 37,200-37,700/mt ($532-540/mt) ex-works Raipur and at INR 38,100-38,700/mt ($545-554/mt) ex-works in the state of Maharashtra. While prices increased in domestic currency, in dollar terms, the top end of the respective ranges only increased $1/mt in Raipur while remaining stable in the Maharashtra area. In regards the bottom of the respective ranges, the ex-works price in Raipur trended stable while the bottom of the Maharashtra area range increased by $6/mt.
As the end of the monsoon season approaches, sources note that domestic steel prices may increase with improved demand by the construction industry from both private and public projects.
USD = INR 68.64 (Aug 7)
USD = INR 69.86 (Aug 20)