Indian Rebar market is seeing a hike since few weeks and it has touched the same increase after 22 months. These similar price ranges were last seen in May’15.
The prices shoot up by INR 200-700/MT d-o-d & INR 500-1,000/MT in a week & INR 2,000-3,000/MT in a month duration.
Presently, 12mm Rebar offers in various part are – at INR 29,900-30,100/MT Ex-Raipur, INR 31,500/MT Ex- Mumbai, INR 31,000-31,500/MT Ex Hyderabad & INR 28,800-29,000/MT Ex-Durgapur.
The market participants in the eastern and central market are quite satisfied with this, as the prices are continuously on increasing mode in line with good demand as well strong price of raw materials.
As per market participants in West and Southern region the is demand on positive note however the prices are sharply hiked on the grounds of shortage of scrap.
A well known rebar manufacturer in Mumbai, Western India stated that “the rise in prices is majorly due to the Scrap either imported or domestic . There is a shortage of the scrap and the rebar demand has been good. Further he added that this shortage of scrap is hampering the production in the plants as most of the western based mills are scrap based”.
According to the sources, the market may remain on the positive note as the demand might gradually increase further as election season going to end in North region especially U.P. which is one of the biggest consumer of the Rebar in India .
Conversion Spread:
With the continous increase in prices of Billet and 12mm Rebar, the conversion spread is hovering between INR 3,000-4,000/MT constantly for a long time in central and western India
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