Secondary rebar manufacturers reduced offers in a week’s time owing to subdued demand.
Since starting Apr’16, secondary rebar manufacturers were facing the pressure as demand for rebar was dull in major Indian market upon decrease in ingot/ billet prices.
Secondary rebar manufacturers had reduced thier offers by upto INR 1,000/MT in a week’s time. Major fall seen in East India by INR 1,000/MT, Central India -a decrease of INR 900/MT, followed by West & South India which culminated the decrease by INR 500-900/MT in the same period of time.
One of the major rebar manufacturer based in Durgapur shared that, “We prefer to export the material recently at around INR 25,500/MT (basic price) for 16 mm in Nepal and local buying is still weak”.
On the other hand, Rebar manufacturers based in Raipur is a regular supplier of rebar to MP and major part of Maharashtra. Buyers are not active at present in Maharashtra as consumption is quite low.
In talk with one of the rebar trader based in Raipur, “It is heard from the sources that there is also some disturbance in the M.P border starting this month which is likely to continue till this month end”.
Thus, producers are finding difficulties for supplying material from Raipur to MP; led to low trade activities from Chhattisgarh.”
Indian billet and rebar prices as on 11 Apr’16
|
Region |
City | Billet | W-o-W | 12 mm Rebar |
W-o-W |
| Central | Raipur | 22,400 | -800 | 25,500 | -900 |
| Eastern | Durgapur | 22,400 | -500 | 24,700 | -1,000 |
| Western | Mumbai | 24,200 | -600 | 27,500 | -400 |
| Ahmedabad | 24,800 | -500 | 27,400 | -400 | |
| Northern | Gobindgarh | 25,000 | -700 | 29,300 | -500 |
| Southern | Hyderabad | 25,500 | -500 | 28,300 | -500 |
| Bangalore* | 24,500 | -400 | 31,800 | -700 |
Basic prices in INR/MT; excise duty and CST/VAT extra
* Ingot price
Source: SteelMint Research
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