Widespread trading discounting has emerged across various regional Indian rebar markets as both primary and secondary producers have attempted to adjust trade prices to keep volumes moving during the low-activity festive period, SteelOrbis learned from trade and industry circles on Tuesday, November 9.
While integrated steel mills have maintained higher base prices after hikes earlier in the month at levels of INR 58,000-60,000/mt ($784-810/mt) ex-works, bookings are heard to have been concluded at prices ranging at INR 55,000-56,000/mt ($743-757/mt) ex-works, down from bookings concluded at INR 56,000-58,000/mt ($757-784/mt) a week ago.
Traded retail prices of secondary mills have been heard at INR 51,000-52,000/mt ($689-703/mt) ex-Mumbai, which is down INR 400-1,200/mt ($5-16/mt) over the past week, and even lower at around INR 49,800/mt ($673/mt) ex-Raipur in central India.
“Producers, primary and secondary, are adopting varying levels of trade discounting to move volumes in the market when retail business activity is at a low across regional markets due to festivals,” sources at Shyam Steel Limited, eastern India’s largest rebar producer, said.
“The demand scenario is very fragmented in various regional markets and producers depending on their geographical location and marketing hinterland are resorting to varied prices to prop up trading activity. The significant point is that, while integrated mills are discounting deals at higher levels after increasing base prices, secondary mills have maintained lower base prices and still have to offer trade discounts, thereby increasing uncompensated input cost increases,” the sources said.
$1= INR 74.00
