India: Limited Trade in Rebar, Prices down by INR 500-700/MT

Rebar prices correct by INR 500-700/MT W-o-W due to increased negative sentiment and traders staying away from the market anticipating further fall in prices.

Rebar prices hold only in Mumbai owing to shortage of Semi-finished steel. Prices in all major markets fell by INR 300-700/MT W-o-W due to low Billet prices. A market participant said, “Finish may fall further due to increased retail inventory and trader anticipation of further fall in prices.”

As per a Rebar manufactuer in Mumbai, “Currently, Rebar prices are somewhat firm owing to shortage of Semi-finished steel as two to three plants were temporarily shut down in Wada region, and viability is also less from neighboring states.” Prices have increased by INR 200/MT in last two days.

In South, demand seems to be very dull, especially in Karnataka region which is a major consumer of Rebar. Rebar prices declined by INR 300-500/MT in Hyderabad and Bangalore W-o-W.

As per a trader in Bangalore, “Slow Construction activity is a major reason owing to which demand of Rebar is not picking up.” He also added that all plants are running at 50% capacity and excess stock is available, indicating that prices are still under pressure.

Rebar manufacturers based in Raipur and Raigarh (Central India) are both offering at almost INR 29,600/MT for 12 mm (Basic prices, Excise duty and other taxes extra) but buyers are limited at the current level.

Rebar manufacturer based in Central India reported, “Trade activites remain to be minimal as expected and market is still weak. It is less likely to pick up shortly.

India Billet and Rebar prices

Basic Prices as on 25 Apr’15, # =12 mm, *Ingot price
Excise duty & CST/VAT extra
Source: SteelMint Research

Note: Above prices are on ex-plant basis, excise duty & other taxes extra