Secondary rebar manufacturers are happier for decrease in inventory level due to sudden off take in recent market.
Rebar trade activities are quite better during last few days across India. Thus, long steel offers in domestic market have jumped suddenly by INR 1,000-1,200/MT in a week.
However, it seems that market is likely to stabilize in upcoming days as traders and stockist have already booked material in bulk quantities in the starting of the current week.
Major rise of INR 1,500-2,000/MT in rebar prices is witnessed in Bangalore owing to improved demand and shortage of material.
Other Indian markets have witnessed a surge of INR 1,000-1,200/MT this week. Manufacturers are happier especially after the Indian government indication on 2 Dec’15 to impose safeguard duty on other steel products also.
Few well-known rebar manufacturers based in Raipur and Indore shared that market has recovered surprisingly in last few days, which was not expected. But, with this rise, inventory level has reduced to a great extent.
A trader based in Indore also reported, “Currently, Indore based rebar manufacturers are offering 12 mm material at around INR 31,900/MT, including VAT. However, manufacturers in Jalna are offering the same size material for Indore region at INR 31,000/MT, FoR. Freight from Jalna to Indore is around INR 1,000/MT.
Indian billet and rebar prices as on 10 Dec’15
|
Region |
City | Billet | W-o-W | 12 mm Rebar |
W-o-W |
| Central | Raipur | 20,400 | +1,100 | 23,700 | +1,100 |
| Eastern | Durgapur | 20,100 | +600 | 22,900 | +1200 |
| Western | Mumbai | 22,500 | +800 | 25,600 | +900 |
| Jalna | 22,200 | +800 | 25,500 | +1,000 | |
| Northern | Gobindgarh | 23,800 | +1,200 | 28,000 | +1,100 |
| Southern | Hyderabad | 22,200 | +700 | 24,600 | +600 |
| Bangalore | 21,600 | +1,100 | 26,500 | +2,000 |
Basic prices in INR/MT; excise duty and CST/VAT extra
Source: SteelMint Research
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