Rebar prices fell by INR 100-500/MT in a day across India; major fall is seen in west and south India.
Secondary rebar manufacturers are bounded to decrease their offers owing low buying seen in the market.
Last month, market participants were expecting better buying of finish long steel products for May’16 amid seasonal demand.
However now, rebar manufacturers are facing extreme selling pressure due to limited buying seen in present market. This in turn has created imbalance between demand and supply.
Rebar prices fell by INR 100-500/MT in a day across India; major fall is seen in west and south India. Price gap between Jalna and Mumbai is also similar now, which earlier used to be INR 500-1,000/MT.
A rebar manufacturer based in Durgapur reported that few deals have concluded to U.P at INR 28,600/MT (including VAT) for 16 mm rebar. Freight from Durgapur to Varanasi is INR 1,400/MT.
Few rebar manufacturers based in Maharashtra stated that they are not optimistic about market, infact it seems that market is likely to fall further as demand is unsupportive.
He also added, there is strong rumour that imported scrap offers are likely to fall in near future by looking at sharply decline in Chinese billet prices during last two weeks.
Indian billet and rebar prices as on 11 May’16
|
Region |
City | Billet | W-o-W | 12 mm Rebar |
W-o-W |
| Central | Raipur | 22,000 | -100 | 24,900 | -200 |
| Eastern | Durgapur | 22,350 | -100 | 24,700 | -200 |
| Western | Mumbai | 23,200 | -400 | 26,600 | -400 |
| Jalna | 23,600 | -100 | 26,600 | -200 | |
| Northern | Gobindgarh | 25,500 | -150 | 29,400 | 0 |
| Southern | Hyderabad | 23,000 | 0 | 25,800 | -500 |
| Bangalore* | 22,700 | -300 | 28,400 | -200 |
Basic prices in INR/MT; excise duty and CST/VAT extra
* Ingot price
Source: SteelMint Research
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