India: Hyderabad Rebar offers uptick by INR 500/MT; Other Market tumbles down

Hyderabad Rebar manufacturers have increased offers by INR 500/MT amid two days weekly power cut in Telangana region. Other market trade remains dull on the grounds of Maharashtra election and beginning of festival season.

Telangana steel mills were already suffering from 1-day power cut problem in a week but now it has increased to two days, which is hampering steel mills’ production. This in turn forced Rebar manufacturers to raise their prices by INR 500/MT to INR 34,300/MT for 12 mm (ex-plant, Excise & VAT extra).

Hyderabad – Major Rebar Supplier to Bangalore

Hyderabad is a major supplier of Rebar to Bangalore owing to good viability and freight. Prices in Bangalore are stable from last 1-month and currently trades are taking place at INR 42,600/MT for 12 mm (inclusive of all taxes.)

A trader remarked FOR price from Hyderabad to Bangalore is around INR 42,000/MT for 12 mm (inclusive of all tax), which is still lesser than Bangalore’s domestic Rebar price. Freight from Hyderabad to Bangalore is around INR 1,400-1,600/MT.

According to another trader at Bangalore, the prices quoted in Hyderabad are high but the actual trades are taking place at discounted price because of low demand and regular supply to the region. In general, Bangalore supplies around 50,000-60,000 MT Rebar per month owing to good viability, he added.

Maharashtra Market weakens amid State Election: Mumbai trade price weakens consecutively from Monday by INR 100-200/MT daily as price has touched to INR 34,500/MT (basic). Traders say amid state assembly election on 15 Oct, 2014 trade volume is very low coupled with transport and labor issue.

Rebar Prices remain at downside: Prices remain at downside as traders & stockiest have refused to stock owing to low finish sale at retailer-end. Source says till Deepawali, market will remain range bound at present level.

Weekly Price Change of Ingot & Rebar (12 mm)

Prices in INR/MT as on 09 Oct, 2014
*Billet price