Re-bar offers are strengthening day by day. At first, prices increased on high TMT demand, now it stands up on raw material shortage (MS Ingot/Billet). MS Ingot offers rose upto INR 2,000/MT, whereas TMT Re-bar offers boosted upto INR 2,600/MT M-o-M.
Re-bar manufacturers are pleased with increasing conversion margin as Ingot offers increased upto INR 2,000/MT, whereas TMT Re-bar offers hiked upto INR 2,600/MT in a month’s time.
Why are Re-bar Prices increasing?
1. Improved Demand: Improved market sentiments over political issue and better demand from local housing constructions, continue to improve the finish Long demand.
2. Finish & Raw Material Shortage: A Re-bar manufacturer based at Jalna said, “Re-bar offers have increased owing to shortage of raw material with improved finish Long demand.”
He added further, “Jalna supplies Re-bar to Maharashtra and nearby states such as Andhra Pradesh & Karnataka (where Re-bar market showing upward trend), which is supporting the high prices.”
3. Increased Billet Export: Billet export from Rourkela & Durgapur to Bangladesh has increased which led to Billet shortage in North India market. Billet offers in Durgapur are at INR 32,000/MT Ex-works for export. Viability for North India buying at this price remains low.
4. Labor Shortage & Low Production: There is low availability of labors in summer that results in shortage of production & loading. As elections are ahead, the market expects that the labor issue will continue to impact the industry.
“There is acute shortage of TMT on low production. Before end of the day, we have to close the sale due to low inventory,” said a TMT manufacturer based at Raipur.
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