Secondary rebar manufacturers continue to lower their offers as selling pressure continues.
In talk with SteelMint, Indian secondary rebar manufacturers have reported that continuous dull demand prevailing in the market since last one week had led to fall in prices. It seems that manufacturers are facing extreme selling pressure and want to offload the material as inventory level are rising continuously.
Rebar prices has fallen by around INR 500-1,200/MT W-o-W. Major fall has seen in South India followed by Central, East and West India.
Few medium size rebar manufacturers in Raipur are currently offering their material at INR 24,300-24,500/MT (basic price) for 12mm and large size manufacturers/premium brand are offering at INR 25,800-26,000/MT for same size material.
A trader based in Bangalore said, “Few Hyderabad based rebar manufacturers are offering 10-25 mm rebars at INR 31,700/MT including VAT for Bangalore region, while Bangalore based rebar makers are offering their material at INR 33,100/MT( basic price) for the same size material”.
A large rebar maker in Ahemdabad said, “By looking at the current market scenario, we are planning to close the mill once in a week but decision is yet to be taken by all manufacturers”.
He also added that our conversion spread from billet to rebar has also reduced to stand at around INR 2,000/MT which was earlier hovering at INR 2,500-3,000/MT.
Indian billet and rebar prices as on 16 May’16
|
Region |
City | Billet | W-o-W | 12 mm Rebar |
W-o-W |
| Central | Raipur | 21,300 | -700 | 24,300 | -800 |
| Eastern | Durgapur | 21,250 | -1,100 | 24,200 | -600 |
| Western | Mumbai | 22,900 | -800 | 26,500 | -500 |
| Ahmedabad | 22,400 | -1,300 | 25,000 | -1,200 | |
| Northern | Gobindgarh | 24,600 | -900 | 29,100 | -300 |
| Southern | Hyderabad | 22,000 | -1,000 | 25,800 | -1,000 |
| Bangalore* | 22,100 | -1,000 | 28,100 | -1,050 |
Basic prices in INR/MT; excise duty and CST/VAT extra
* Ingot price
Source: SteelMint Research
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