The long steel prices in India are rigorously moving down due to like decline in Ingot/billet prices amid seasonal slow demand and rising inventories with the rolling mills.
Monthly Average Rebar price for major cities (12 mm)
| Month | Durgapur | Delhi/NCR | Raipur | Chennai | Jalna |
| Jun’18 | 41,110 | 43,696 | 40,704 | 40,600 | 40,408 |
| Jul’18 | 36,638 | 39,031 | 36,246 | 39,331 | 36,808 |
| Aug’18 | 36,150 | 37,790 | 35,670 | 39,480 | 37,260 |
August prices taken till 11.08.18
Particularly, the proportion for the fall in the prices for long steel (rebar) was high than the decline in Billet and Ingot prices. Hence, this fall in the offers has also affected the conversion (margins) of Indian re-rollers and it remained upset.
As the margins are dipping, the market participants believes that, this might lead to cut in productions in specified regions to match dull buying inquiries and prevent selling pressure.
Also they stated that, Indian re-rollers margins will be mild till monsoon and afterwards the construction activities will improve conversion spread accordingly.
Currently the conversion from MS Billet to 12 mm Rebars in various regions can be witnessed at INR 3,500/MT in Western Region- Mumbai, INR 3,000-3,100/MT in Central Region – Raipur, INR 3,200-3,300/MT in Eastern Region – Durgapur and INR 4,200/MT in South Region – Chennai.
According to the Industry participants the average handling cost for the standalone rolling mill from the Billets is about INR 3,500-4,000/MT, while for hot rolling mill (HRM) it required near to INR 2,500-2,800/MT.
Leave a Reply