India: Higher Semis Offers Pushed Rebar Prices in West and South Regions

Rebar offers are stagnant since couple of weeks across all regions in India. However last weekend there was a sharp hike in the rebar offers in West and Southern regions.

In the last couple of days, rebar offers surged around INR 500-800/MT (USD 8-12) in Maharashtra, Gujarat (Western region) and in Tamilnadu & Andhra Pradesh (South India).

As per one of the big Wardha, Maharashtra based manufacturer, who produces about 25,000-28,000 MT rebar monthly stated that “the demand is average for the day, the current rise in the offers is owing to the high input cost (expensive scrap & sponge) and an hike in the billet offers”

Further few medium size mill owners in the state (each unit's rebar production about 6,000-9,000 MT) stated that, both RERA (Real Estate Regulation Act) and monsoon has adversely affected the bulk bookings from the builders end and are expecting the market to pick up in second or third week of August once the monsoon eases.

Heading towards, Gujarat, there is no major movement seen in the finish steel as there are heavy rains for a week now in the region. The rise in the billet offers are supported by the good exports have resulted in strong rebar offers.

One of the manufacturer based in Gujarat with the production of 350 TPD stated that “the inventories with us rose almost three times as there is no major demand for rebars. In near terms there are high possibilities that few plants might halt the production in Gujarat owing to the piled up stocks with them with lull demand for the material” he said.

Similar situation is seen in the South region; wherein surge in billet offers have resulted rebar offers to increase.

However, the other regions like Central, East and North India offers remained unaltered owing to the weak demand for rebars.

Source: SteelMint Research