Secondary market participants anticipate prices may remain stable in the current month owing to ongoing festival season and closure of banks. However, primary producers have reduced Rebar prices by INR 500-1,000/MT for Oct’14.
Prices in Central India up by INR 600/MT W-o-W: Rebar offers in Raipur & Indore have increased by INR 400-600/MT over last week, but traders say volumes remain low owing to closure of bank and limited transportation, as festival season in India has just started. Currently, MS Ingot in Raipur rose by INR 400-500/MT and traded at INR 30,100/MT (ex-plant, Excise &VAT extra).
CG & MP Price Difference widen further: In Indore, Rebar prices are currently hovering in the range of INR 37,000-37,500/MT for 12 mm (ex-plant, Excise and VAT extra). While in Raipur, it is at INR 33,500-33,700/MT for the same size, which makes a difference of INR 3,500-4,000/MT.
Raipur based trader says, “Limited transportation availability and restricted overloading are the major reasons for low demand from Indore, where prices are lucrative. Most of the buyers have shifted to UP market.”
Mumbai Re-roller Association increases 20 mm Gauge Difference by INR 200/MT: Recently, Mumbai Re-roller Association has increased the gauge parity for 20 mm Rebar by INR 200/MT in order to increase the conversion spread cost. In Mumbai, Rebar prices are hovering in the range of INR 34,900-35,100/MT for 12 mm (ex-plant, Excise & VAT extra).
Gauge Parity for Mumbai
|
New |
Old |
|
Mumbai w.e.f 27 Sep, 2014 |
Mumbai w.e.f 25 Jan, 2014 |
|
Basic = Open Prices |
Basic = Open Prices |
|
8mm = Open Prices + 3,400 |
20 mm = Open Prices + 1,800 |
|
12,16,20,25 mm = Open Prices + 2,000 |
8 mm = Open Prices + 3,400 |
|
10, 32 mm = Open Prices + 2,400 |
12,16, 25 mm = Open Prices + 2,000 |
|
|
10, 32 mm = Open Prices + 2,400 |
W-o-W Change & Prices of MS Ingot and Rebar (12 mm)
|
Region |
City |
Ingot Price |
W-o-W Change |
Rebar Price |
W-o-W Change |
Remarks |
|
Central |
Raipur |
30,100 |
0 |
34,500 |
+ 600 |
MP border remains close |
|
Western |
Mumbai |
31,650 |
-250 |
34,900 |
-300 |
State Assembly Election from 15-19 Oct, 2014 |
|
Northern |
Mandi |
33,700 |
+ 700 |
37,800 |
+ 500 |
Night power tariff reduced by 1.5/unit for furnaces |
|
Southern |
Chennai |
31,250 |
+ 100 |
36,000 |
0 |
Trade volume remains thin |
Prices in INR/MT as on 06 Oct, 2014
Leave a Reply