Domestic secondary rebar manufacturers continue to face selling pressure despite peak season of construction activities.
Indian secondary rebar manufacturers have reduced offers by INR 500-2,200/MT across major markets in a week’s time. Despite peak season of construction activities i.e. during January-March, manufacturers are facing selling pressure owing to low buying from end-users.
Major fall of INR 1,600-2,200/MT in prices are seen in eastern, central and northern part of India, followed by western India (INR 500-1,000/MT).
However, rebar manufaturers based in Mumbai have increased offers by INR 500-700/MT in the last few days on account of improvement in buying.
Meanwhile, primary rebar manufacturers have increased offers twice in the current month by INR 1,500-2,000/MT in total on the anticipation of better demand in the upcoming month.
Market participants are also expecting that the government may announce spending on infrastructure projects in the upcoming union budget. This may in turn boost demand of construction materials.
Indian billet and rebar prices as on 16 Feb’16
|
Region |
City | Billet | W-o-W | 12 mm Rebar |
W-o-W |
| Central | Raipur | 21,550 | -1,300 | 24,800 | -1,600 |
| Eastern | Durgapur | 20,950 | -1,600 | 23,900 | -2,200 |
| Western | Mumbai | 23,800 | – 850 | 27,500 | -500 |
| Ahmedabad | 23,600 | -1,400 | 26,400 | -1,000 | |
| Northern | Gobindgarh | 25,000 | -650 | 29,500 | +200 |
| Ghaziabad* | 24,000 | -1,000 | 26,900 | -2,200 | |
| Southern | Hyderabad | 23,000 | -1,500 | 25,700 | -1,000 |
| Bangalore* | 20,300 | -1,300 | 27,200 | -500 |
Basic prices in INR/MT; excise duty and CST/VAT extra
* Ingot price
Source: SteelMint Research
Note: Prices are basic, excise duty & other taxes extra
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