Indian rebar and wire rod prices strengthened consecutively in Week 09. For rebar, the price hike was in the range of INR 500-1,100/MT (USD 7-16) and Wire Rod prices saw a sharp hike of INR 400-900/MT (USD 5-12).
The rebar prices rose majorly due to the strong demand in the market and also due to increase in Ingot/billet prices.
However, in wire rod market the manufacturers based in Raipur & Durgapur stated that the demand is not good and the reason behind the price rise is due to the significant price surge of raw materials.
Indian 12mm Rebar Prices as on Week 09 (25 Feb’17)
|
Region |
City | Rebar (12 mm) | W-o-W | Wire Rod (5.5mm) | W-o-W | ||
| 20th Feb | 25th Feb | 20th Feb | 25th Feb | ||||
| Central | Raipur | 28,400 | 29,100 | +700 | 29,800 | 30,700 | +900 |
| East | Durgapur | 27,500 | 28,000 | +500 | 28,000 | 28,400 | +400 |
| North | Gobindhgarh | 31,500 | 32,400 | +900 | – | – | |
| South | Banglore | 31,200 | 32,300 | +1,100 | – | – | – |
| West | Mumbai | 30,300 | 30,900 | +600 | – | – | – |
Basic prices in INR/MT; excise duty and CST/VAT extra
Source: SteelMint Research
Rebar trade sentiments in major markets:
According to the manufacturers based in Raipur, Central India & Durgapur, East India, there is no major stock available with the manufacturers as well as the traders and all the plants are on full production to meet the demand supply chain and to recover their earlier losses .
A renowned manufacturer of Wardha , Maharashtra who’s monthly rebar production is nearly to 30,000 MT stated ‘’we are not looking price reduction for the coming one month duration as there is strong demand & advance bookings too. In addition, short supply of raw materials is indicating further price strength in days to come.”
A trader based in Bangalore stated that there is subdued demand at increased prices. Moreover, the prime focus is to clear previous bookings which booked at lower prices than the current offer prices.
Outlook for the perusing week (Week – 10)
– According to the market participants, there is very less scope that the prices might go down in coming days as there is decent demand in rebar & billets prices are rising day by day.
– In the wire rod market, there are possibilities that the stockiest might go with the current prices as there is thin demand in these prices.
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