The heavy rainfall in Tamil Nadu during last 1-week has affected the Rebar sales in Chennai. Also, low buying sentiment in Mumbai has corrected the prices to 10 months low level.
Weak demand in Rebar market continues to persist even after the Diwali. Currently, Rebar prices in Mumbai are trading at almost 10 months low. 12 mm Rebar is being offered at INR 33,300/MT; down by INR 500/MT W-o-W. While, MS Ingot is traded at INR 30,150/MT; down by INR 350/MT..
A trader in Mumbai stated, “Demand remains slow for the domestic Rebar as prices of imported Rebar are still trading at below domestic prices. Imported Rebar is trading at around INR 32,600-33,000/MT (ex-Plant, Excise and VAT extra) for 12 mm, which is lower than domestic price by INR 400-700/MT.”
In Scrap based Chennai market, Rebar is being traded at INR 39,000/MT (inclusive excise, VAT extra); slumped by INR 800-1,000/MT W-o-W owing to fall in Ingot prices by INR 900/MT in the same period.
A manufacturer based in Chennai quoted, “Amid heavy rainfall in Tamil Nadu, construction activities remain slow, which in turn has lowered the sales of Rebar in the market. It is expecting that prices will remain at the same level for the next two weeks.”
Imports of Rebar have also risen since last 6 months in the coastal areas, which hits the Bar & Rod domestic manufacturers.
According to recent data released by Steel Ministry, total import of Bars & Rods (alloy & non-alloy) has increased by 43% in Sep’14 to around 154,990 MT as compared to 23% in the previous month.
Import of Bars & Rods (Alloy & Non-alloy Steel) from Apr’14-Sep’14
|
Bar & Rods |
Apr’14 |
May’14 |
Jun’14 |
Jul’14 |
Aug’14 |
Sep’14 |
Total |
|
Alloy Steel |
21,700 |
32,000 |
8,160 |
14,380 |
44,040 |
23,490 |
1,20,280 |
|
M-o-M change |
|
47% |
-75% |
76% |
206% |
-47% |
– |
|
Non-Alloy Steel |
27,320 |
32,080 |
45,870 |
73,580 |
64,450 |
131,500 |
2,43,300 |
|
M-o-M change |
|
17% |
43% |
60% |
-12% |
104% |
– |
|
Total Import (Alloy & Non-Alloy) |
49,020 |
64,080 |
54,030 |
87,960 |
108,490 |
154,990 |
5,18,570 |
|
M-o-M change |
|
31% |
-16% |
63% |
23% |
43% |
– |
Qty in MT
Source: JPC-Steel Ministry
Weekly Change in MS Ingot and 12 mm Rebar Prices
|
Market |
Region |
City |
Ingot Price |
W-o-W |
Rebar Price |
W-o-W |
|
Sponge-based |
Central |
Raipur |
28,800 |
0 |
33,200 |
-300 |
|
Eastern |
Durgapur |
29,450 |
-150 |
32,500 |
-400 |
|
|
Scrap-based |
Western |
Mumbai |
30,200 |
-300 |
33,300 |
-700 |
|
Northern |
Muzaffarnagar |
31,400 |
-150 |
33,700 |
-400 |
|
|
Southern |
Hyderabad |
29,900 |
-200 |
33,200 |
-300 |
|
|
Chennai |
30,250 |
-900 |
34,700 |
-1,000 |
Basic prices as on 01 Nov, 2014 in INR/MT
Source: SteelMint Research
Leave a Reply