Indian integrated steel mills have lowered their rebar base prices during the past week, triggering a cooling down of tradable prices of both primary and secondary sellers across regional markets, SteelOrbis has learned from trade and industry circles on Tuesday, March 9.
The sources said that integrated steel mills have cut rebar base prices by around INR 1,000/mt ($14/mt) to around INR 49,000/mt ($668/mt) ex-work, causing tradable prices to soften to around INR 50,000-50,500/mt ($682-689/mt) ex-Mumbai. High tradable ex-Mumbai prices ranging up to INR 52,000/mt ($709/mt) a week ago are not heard in the market anymore, market intermediaries said.
Secondary rebar producers have effectively rolled back the price increases effected earlier by reducing base prices by INR 500/mt ($7/mt) to around INR 49,000/mt ($668/mt) ex-works, thereby almost bringing about price parity between primary and secondary sellers.
“Rebar producers’ room to push up prices or even maintain higher levels is getting very limited by consistent pressures from user industries and the government giving serious consideration to implementing measures to rein in steel prices and support user industries,” an official at eastern India’s largest rebar producing steel mill said.
“Producers are also taking a call in favor of passing on the benefits of the slight fall in input costs to buyers of long steel products to spur demand. Market resistance to higher prices is too strong for producers to reject without risking a stronger government backlash, and also facing risks from the verdict of the Competition Commission of India (CCI) investigation into cartelization,” he added.
$1 = INR 73.30
