Indian Rebar manufacturers are operating at thin margins on the backdrop of subdued demand and high raw material cost.
Indian Secondary Rebar manufacturers are struggling for survival over past few months on the grounds of falling steel prices and rising imports. The situation is so worse that many units are either shutdown or operating at 40-50% capacity level.
For instance, price difference between Ingot and Rebar (12 mm) in Raipur is INR 4,400/MT, which was INR 5,200/MT in the month of October. Similarly, in Hyderabad, it is around INR 3,100/MT, which was around INR 3,400/MT in October.
Price gap has fallen owing to low Rebar off-take and demand is not supportive. Rebar manufacturers blame import of non-BIS grade Rebar from China is at a competitive price. Though, the government has made BIS certification mandatory for all imports of steel, manufacturers feel it is just a temporary solution and imports can not be stopped in medium to long run, if Chinese prices continue to remain weak.
On the Chinese import saga, the Bombay High Court has accepted the petition filed by the importers to relax BIS norms on already arrived material and one in transit. Its hearing is likely to happen in the second week of December.
Primary manufacturers have not officially declared their prices for December but looking at the demand scenario, prices are expected to correct by INR 500-1,000/MT.
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