Rebar manufacturers based in Bellary are offering material at quite competitive price for Bangalore as compared to Hyderabad market.
Till now, Hyderabad is one of the biggest rebar suppliers to Bangalore owing to better viability. Earlier, rebar price gap between Hyderabad and Bangalore was around INR 2,000-2,500/MT and about 80% of the material produced in Hyderabad was sold to all over Karnataka region. However now, the price gap has reduced to just INR 1,000/MT; leading to low viability.
The major reason behind such scenario is that few large rebar manufacturers based in Bellary are very active in selling rebar to Bangalore at very competitive price, especially in retail segment. Traders and end-users in Bangalore are showing keen interest owing to better viability.
Currently, rebar offers from Bellary to Bangalore are assessed at INR 29,500/MT (including all taxes) for 8 mm and INR 29,100/MT for 10-25 mm. However, few Bangalore based rebar manufacturers are offering at INR 29,800/MT for 8 mm and INR 29,400/MT (including all taxes) for 10,12 and 16 mm.
It is also heard from the market participants that Bellary is likely to become next bigger finished long steel market in south India as few rebar mills are coming up that will cater mostly to Bangalore market.
Road freight from Bellary to Bangalore is INR 1,000/MT and from Hyderabad to Bangalore is INR 1,500/MT.
Indian billet and rebar prices as on 23 Nov’15
|
Region |
City | Billet | W-o-W | 12 mm Rebar |
W-o-W |
| Central | Raipur | 19,600 | – 600 | 22,900 | – 400 |
| Eastern | Durgapur | 19,900 | – 200 | 22,300 | – 500 |
| Western | Mumbai | 21,900 | + 50 | 24,900 | + 300 |
| Jalna | 21,500 | – 200 | 24,750 | – 100 | |
| Northern | Gobindgarh | 23,200 | – 100 | 27,700 | – 300 |
| Southern | Hyderabad | 21,500 | 0 | 24,000 | – 500 |
| Bangalore* | 20,500 | – 800 | 24,900 | – 700 |
Basic prices in INR/MT; excise duty and CST/VAT extra
* Ingot price
Source: SteelMint Research
Note : above prices are basic, excise duty & other taxes extra
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