Rebar prices in Indian secondary market had surged by INR 1,500-2,500/MT post MIP, but subsequently fall by more than 50%.
Rebar prices in secondary market were quite volatile after the minimum import price (MIP) was imposed on various steel products by the government on 5 Feb’16.
Prices rose sharply by INR 1,500-2,500/MT in a weeks’s time across secondary market post MIP, but it was not absorbed owing to dull demand. As a result, it started to fall by over 50% during 2nd week of the current month.
In the last one week, prices had surged again by INR 500-1,000/MT in the secondary market due to rise in primary producers’ offers. However, trades were limited in the duration.
Primary rebar manufacturers had consistently increased offers after the MIP imposition in the current month. They had increased offers by INR 2,500-4,000/MT in two to three tranches.
Presently, there is still not a clear direction about the domestic rebar market as traders/stockist are hesitating to place orders. While, many market particpants believe that demand will improve after the upcoming union budget.
Indian billet and rebar prices as on 24 Feb’16
| Region | City | Billet | D-o-D | W-o-W | 12 mm Rebar | D-o-D | W-o-W |
| Central | Raipur | 22,100 | -50 | +500 | 24,900 | -400 | +500 |
| Eastern | Durgapur | 21,400 | -100 | +300 | 24,400 | 0 | +600 |
| Western | Mumbai | 24,000 | -400 | +300 | 27,800 | -100 | +400 |
| Ahmedabad | 23,650 | -200 | +300 | 26,500 | -500 | +600 | |
| Northern | Gobindgarh | 25,600 | 0 | +600 | 29,900 | 0 | +500 |
| Ghaziabad* | 24,000 | -200 | +100 | 27,300 | -300 | +400 | |
| Southern | Hyderabad | 23,500 | 0 | +500 | 26,700 | -500 | +500 |
| Bangalore* | 21,600 | 0 | +1,300 | 28,500 | +1,200 |
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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