Rebar buying has improved suddenly in last few days, especially in Chhattisgarh and Mumbai.
Rebar demand, which was subdued from a quite long time, is now seems to improve suddenly in last few days. Alongside, many steel manufacturing units are out of the stock.
A rebar trader located in Raipur shared, “If you are looking to buy 200-300 MT rebar of all sizes ready to delivery, no single units in Raipur can able to supply.”
Few small/medium sized rebar manufacturers had concluded some deals at INR 22,500-22,800/MT (basic price, excise duty and other taxes extra) for 12 mm.
Similarly in Mumbai, buying has improved suddenly in last few days. As a result, offers are firm for both ingot/ billet and rebar.
As per a rebar manufacturer in Mumbai, “Demand is quite good in Mumbai as compared to other parts of Maharashtra and is expected to be positive in coming days.”
He also added that inventory of rebar, which was piling up during Diwali, has now started to touch a comfortable level.
Rebar prices may pick up any time soon considered low inventory in plants, stockiest and retailers, mentioned many trade sources.
“Rebar prices are currently an all time low, which is pulling down market. However, demand is not that bad. Not even a single unit is earning profit and losses to rolling mills have increased to INR 1,000/MT; minimum in past few days“, shared a project supplier located in Mumbai.
He added that prices may increase by INR 1,000-1,500/MT from present level anytime soon as stock will vanished further.
A rebar manufacturer based in Durgapur while illustrating about piling up of inventory said, “Rebar sales is quite bad from a long time. I have 3,000 MT of stock with all regular items.”
Indian billet and rebar prices as on 25 Nov’15
| Region | City | Billet | W-o-W | 12 mm Rebar | W-o-W |
| Central | Raipur | 19,250 | – 750 | 22,600 | – 500 |
| Eastern | Durgapur | 19,500 | – 500 | 22,000 | – 500 |
| Western | Mumbai | 22,050 | + 150 | 24,800 | – 400 |
| Jalna | 21,800 | + 200 | 24,750 | 0 | |
| Northern | Gobindgarh | 22,800 | – 400 | 27,600 | – 300 |
| Southern | Hyderabad | 21,500 | 0 | 24,000 | 0 |
| Bangalore* | 20,300 | – 250 | 24,550 | – 700 |
Basic prices in INR/MT; excise duty and CST/VAT extra
*Ingot price
Source: SteelMint Research
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