On August 6, SteelOrbis reported that some large mills in India decreased their domestic rebar list offer prices for August as reflected in ex-works Mumbai prices.
While the larger firms with a wide price gap compared to small to medium-sized mills have decreased their list prices, SteelOrbis has been informed today that medium steel mills are not receiving downward pressure on their prices, but due to the opportunity provided by the wide gap, have started to increase offer prices. Offers on 12mm rebar are now 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.
Compared to July 26, prices for 12mm rebar from medium to small sized steel mills, which were at about INR 34,500-35,100/mt ($502-511/mt) ex-works in the Raipur area and INR 36,000/mt ($524/mt) ex-works in the Maharashtra region, ex-Raipur prices increased $30/mt from the bottom of the previous range and $28/mt from the top of the same range. Maharashtra prices increased $15-30/mt over the past two weeks.
The increase in rebar prices is attributed to the uptick in billet prices. According to a source, some Indian mills “curtailed the production of billet to tighten some of the supply, increase prices and reduce their losses, thereby assisting rebar prices in turn as construction activity should soon begin to increase on seasonal effect.”
USD = INR 68.71 (Jul 26)
USD = INR 68.64 (Aug 7)