Secondary Rebar sales seem to be low in major market. However, offers had increased in North and West regions.
Secondary Rebar market remains bearish on account of low buying in the market. Low demand of finished product is continued in the 3rd week of November, which has reduced the conversion spread between Ingot/Billet & Rebar.
On 07 Nov’14, Central Board of Excise and Custom (CBEC) under Ministry of Finance had announced to restrict the import of Rebar in all ports but no immediate impact has seen so far. Imported Scrap offers in Mumbai have fallen by USD 10-15/MT in the current month. However, weak Indian currency against dollar holds Rebar prices at the current level of INR 33,200/MT.
Rebar offer in North India have hiked by INR 500-1,000/MT in a day owing to rise in Ingot prices. Currently, in Delhi/NCR, the material is being offered at INR 34,100/MT. However, Rebar in South Bangalore is being offered at INR 40,600/MT (including all taxes); down by INR 600/M W-o-W.
A trader based in Bangalore said, “Imported Rebar is trading at around INR 40,000/MT (including taxes; FoR). Slight price correction is still expected owing to cheaper imported Rebar in the market.”
Rebar prices in Raipur (Central India) have slightly increased today on the background of increase in Ingot prices but the actual trades are taking place at below price level. Currently, offers have fallen by INR 500/MT W-o-W to INR 32,000/MT. Meanwhile, in eastern India (Durgapur), Rebar offers have corrected by INR 300/MT W-o-W to INR 31,800/MT.
An official of one of the leading Rebar producers stated, “Low imported Scrap offers will not make any impact on primary Rebar producers.”
Expert believe prices have hit rock bottom and many Rebar mills are running at low production owing to low off-take in various regions and it seems prices to improve from here.
Note: All prices are of 12 mm Rebar with Excise & VAT extra.
Weekly & Monthly Price Change of Billet and Rebar (12 mm)
| City | Billet | W-o-W | M-o-M | Rebar | W-o-W | M-o-M |
| Raipur | 28,200 | -150 | -1,150 | 32,000 | -500 | -1,400 |
| Mumbai | 30,000 | +300 | -350 | 33,200 | +200 | +400 |
| Bangalore* | 29,000 | -250 | -1,350 | 34,400 | -600 | -1,600 |
| Hyderabad | 29,000 | -1,000 | -1400 | 32,100 | -700 | -1400 |
| Durgapur | 29,500 | +350 | -600 | 31,800 | -300 | 1,100 |
| Mandi | 32,000 | +200 | -1,000 | 36,000 | -300 | -1,600 |
Basic price in INR/MT as on 20 Nov, 2014
Excise & VAT extra
*Ingot price
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