Durgapur, West Bengal based Steel Re-roller association have increased rebar gauge parity for 8mm by INR 200/MT & 12mm by INR 300/MT. Previously, gauge parity was revised on 23 Mar’16.
The revised gauge is applicable from today on wards i.e. 24 Mar’17. However, the manufacturers have kept unaltered gauge parity for rest of the sizes for rebar.
A well known rebar producer, in a meeting held yesterday in Durgapur said, “All rebar manufacturers based in Durgapur have decided to increase parity by INR 200-300/MT for 8 & 12 mm in order to match high input cost.”
Although, in data analysis it is assessed that conversion spread (margin) from billet to 12 mm rebar have already increase INR 1,000/MT to INR 4,800-5,000/MT from earlier at around INR 4,000/MT.
Presently, the manufacturers across major markets in India are running the plants in full capacity due to strong demand amid rise in conversion spread.
Historical Gauge Parity for Durgapur
| Old Gauge Parity | Old Gauge Parity | New Gauge Parity |
| w.e.f 11th Feb’15 | w.e.f 23rd Mar’16 | w.e.f 24 Mar’17 |
| Base price =16 mm | Base price =16 mm | Base price =16 mm |
| 8mm = +2,000 | 8mm = +2,200 | 8mm = +2,400 |
| 12mm = +300 | 12mm = +500 | 12mm = +800 |
| 10, 20, 25 mm = +1,000 | 20 & 25mm = +10,00 | 20 & 25mm = +1,000 |
| 28 & 32mm = +1,500 | 10mm = +1,200 | 10mm = +1,200 |
| 28 & 32mm = +1,500 | 28 & 32mm = +1,500 |
Gauge parity in INR/MT
Source: SteelMint Research
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