India: Secondary Rebar Producers compel to correct Prices by upto INR 800/MT W-o-W

Secondary Rebar manufacturers in major cities have corrected their offers by INR 500-800/MT owing to low buying. Meanwhile, Ingot prices have also reduced by INR 500-1,000/MT W-o-W.

Indian secondary Rebar producers are compelled to correct their offers on the background of poor demand of finished steel products in the market. Amid low demand from end-users, Rebar offers in Mumbai & Goa have fallen by INR 500/MT. Domestic Rebar (12 mm) in Mumbai is being offered at INR 33,200/MT. Whereas, imported Rebar is being traded in the range of INR 32,000-32,600/MT (ex-plant, Excise and VAT extra).

Mumbai based Rebar manufacturers said, “Rebar is currently trading at very low level and there is still price gap of around INR 800-1,000/MT between domestic and imported Rebar.”  

MS Ingot prices have also declined by INR 800- 1,000/MT in last 1-week and being offered at INR 29,500/MT in Mumbai and at INR 29,100/MT in Goa (basic prices).

Sponge based market, Raipur is facing high pressure owing to low buying in the market and offers 12 mm Rebar at INR 32,700/MT (ex-plant, Excise and VAT extra); down by INR 600/MT W-o-W . Secondary manufacturers are running their plants at below capacity level of 20-30%.

A Rebar manufacturer based in Raipur, “Demand seems to be very low in the market, which in turn has increased the inventory level, but we are expecting prices will pick up in the upcoming week.”

Weekly Change in Ingot and Rebar (12 mm) Prices

Basic prices in INR/MT as on 10 Nov, 2014
Source: SteelMint Research