“Among all, 75% of market players (TMT) said that market will raise by INR 500-1,000/MT, whereas rest 25 % believe that dull sales may create selling pressure on Re-bar manufacturers”, SteelMint learned.
Highlights of the previous week:
North India: Re-bar offers came down by INR 400-600/MT on W-o-W basis.
East India: Finish market improved in the range of INR 200-600/MT in a week’s time.
Central India: Offers for Re-bar slashed by INR 200/MT in Raipur.
West India: Prices are untouched in most of the cities, whereas offers have witnessed a slight downfall of INR 200/MT and INR 900/MT W-o-W in Mumbai & Ahmedabad respectively.
South India: On a side where, Re-bar prices increased by INR 200-550/MT in Bangalore & Chennai, while it reduced by INR 500/MT in Hyderabad.
Price hike in Re-bar gauge difference is continue
Re-rolling mills associations are increasing Re-bar gauge difference one by one. Few days earlier, the increment of about INR 400-600/MT was made by Re-rolling mills association of Madhya Pradesh. Now on last Saturday, Mumbai Re-bar manufacturers also made an increment of INR 200-400/MT for Re-bar gauge difference.
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Mumbai Re-bar Gauge Difference |
|
|
New (W.E.F.- 25.01.2014) |
Old (W.E.F.- 15.06.2013) |
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Basic = Open Price |
Basic = Open Price |
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20 mm = Open Price + 1,800 |
8 mm = Open Price + 3,000 |
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8 mm = Open Price + 3,400 |
12,16, 20, 25 mm = Open Price + 1,800 |
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12,16, 25 mm = Open Price + 2,000 |
10, 32 mm = Open Price + 2,200 |
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10, 32 mm = Open Price + 2,400 |
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Basic Price in INR/MT |
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Conversion spread from Ingot to TMT increased from Last Week
TMT (Re-bar) manufacturers get some relief as conversion margin increased to about INR 200-500/MT from last week. Whereas, Hyderabad & Ahmedabad TMT manufacturers have to keep patience as their conversion margin went down by INR 200-300/MT.
This time Re-bar manufacturers kept their offers unchanged with negligible changes in Ingot prices, which helped them to make profit margin in conversion. Though, Re-bar prices fluctuated by INR 400-500/MT in week’s time.
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Ingot to TMT conversion as on 27 Jan, 2014 |
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Region |
City |
MS Ingot |
TMT (12 mm) |
Conversion/Spread |
|
|
Conversion |
W-o-W Change |
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Central |
Raipur |
29,700 |
33,600 |
3,900 |
100 |
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East |
Durgapur |
30,400 |
33,700 |
3,300 |
300 |
|
North |
Mandi Gobindgarh |
32,800 |
36,700 |
3,900 |
200 |
|
West |
Mumbai |
32,200 |
36,000 |
3,800 |
500 |
|
West |
Ahmedabad |
32,350 |
36,400 |
4,050 |
-300 |
|
South |
Hyderabad |
31,500 |
35,000 |
3,500 |
-200 |
|
South |
Chennai |
32,700 |
37,400 |
4,700 |
350 |
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Note: Basic Price in INR/MT. ED, VAT & Loading Extra |
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