On October 22, SteelOrbis reported rebar prices by major companies in India were reportedly at INR 44,500-45,000/mt ($604-611/mt) ex-works Mumbai, and on the lower end of the same range ex-works Chennai on the southeast coast of India.
According to sources close to SteelOrbis, the spread between rebar prices from larger and smaller mills has increased since September. In September the spread was approximately INR 3,000-3,500/mt with the higher prices at the larger mills. Sources inform that in October the spread was widened to INR 5,400-5,800/mt. A source noted with the devaluation of the INR in the global economy, smaller firms had to concede prices in the uncertain environment while larger firms with longer-term contracts, government support, hedging positions and deeper cash flow and financing options could maintain prices higher. Prices at larger rebar mills are reportedly at INR 44,500-45,000/mt ($609-614/mt) ex-Mumbai for 12mm rebar. Due to currency fluctuations, large mill prices increased $5/mt on the bottom of the previous range and $3/mt on the top of the same range.
Compared to October 12 prices at small to medium-sized mills, which were reportedly at INR 37,900-38,300/mt ($514-520/mt) ex-works Raipur, with a source reporting that prices in Mumbai were about the same, prices are now reportedly up at INR 38,500-39,000/mt ($526-533/mt) ex-Mumbai. In dollar terms, the price generally increased $12/mt from the bottom of the previous range and $13/mt from the top of the same range.
USD = INR 73.65 (Oct 22)
USD = INR 73.12 (Oct 26)