Local Indian rebar prices have showed marginal regional variations over the past week amid slack trading conditions with prices moving down slightly in the central regional market amid a softening of sponge iron prices, SteelOrbis learned from trade and industry circles.
Traded rebar prices have remained unchanged at around INR 51,400-53,200/mt ($686-710/mt) ex-Mumbai. However, some secondary mills based at Raipur in central India are reported to have lowered rebar prices by INR 500/mt ($7/mt), responding to sponge iron prices easing by INR 400/mt ($5/mt) to levels of around INR 34,000/mt ($454/mt) ex-Raipur.
Integrated mills have maintained base prices at INR 56,000-57,000/mt ($747-761/mt) ex-works, but traders said that producers have largely withdrawn discounts heard at around INR 1,000/mt ($14/mt) a week ago, to improve realizations and offset rising costs of coal.
“Sluggish market conditions are getting extended well after the monsoon season. There are cost-push inflationary pressures on producers, who are attempting to pull out of discounted sales and push up prices. But at the same time, retail demand from real estate and housing construction, the prime market for secondary mills, has not picked up as it usually does after retreat of the rainy season. Hence, buyers are extremely cautious in making fresh bookings,” sources at Shyam Steel, eastern India’s largest rebar producer, said.
“Demand is reviving from projects. But for retail demand to improve, housing sector demand needs to keep pace to benefit secondary mills operating at low capacities due to coal shortages and slow stock movement,” the sources added.
Officials at exclusive long product producers like state-run Rashtriya Ispat Nigam Limited (RINL) have pointed out that exports of semis have been key in inventory management of long products, with the mill emerging as the most aggressive seller of semis over the past two months.
$1 = INR 74.90