Rebar supply from Raipur to north India has became unviable as price gap between both the markets has reduced to large extent.
Raipur, one of the largest rebar manufacturing hubs in central India, used to supply material in bulk quantities across north India owing to better viability. However now, supply of material has lowered down as all rebar manufacturers in Muzaffarnagar and Ghaziabad reduced their prices by INR 1,000-1,200/MT within last 10 days.
In addition, it is also heard from trade sources that road freight from Raipur to Delhi has increased by about INR 400/MT recently.
For an instance, Raipur based small/medium size manufacturers are offering 12 mm material at INR 29,500-30,000/MT (including all taxes & trailor freight) and INR 29,000-29,500/MT (including all taxes & truck freight).
Freight from Raipur to Delhi via trailor is INR 3,200/MT and through truck is INR 2,600/MT.
While, rebar manufacturers based in Muzaffarnagar/ Ghaziabad are offering the same size material for Delhi/NCR in the range of INR 29,000-29,500/MT.(including all taxes and freight).
Indian billet and rebar prices as on 12 Aug’16
|
Region |
City | Billet | D-o-D | 12 mm Rebar |
D-o-D |
| Central | Raipur | 19,350 | -100 | 22,000 | -100 |
| Eastern | Durgapur | 19,450 | +200 | 21,200 | 0 |
| Western | Mumbai | 20,900 | 0 | 23,800 | 0 |
| Ahmedabad | 20,750 | -100 | 22,800 | 0 | |
| Northern | Gobindgarh | 22,400 | 0 | 26,700 | -300 |
| Southern | Hyderabad | 21,000 | 0 | 24,000 | 0 |
| Bangalore* | 21,000 | 0 | 26,000 | 0 |
Prices in INR/MT
Source: SteelMint Research
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