Indian Rebar and Wire Rod manufacturers are continuously increasing their prices and same was seen in week 14 (during last week). In a week’s duration the prices sharply went upwards, up to INR 400-800/MT (USD 6-12).
Demand was remain supported, according to the manufacturers in Central, East & South India.
In Central Region, the withdrawal of rebate (INR 1.40/Unit) from 1st April’17 in power (Still need further clarification) and increase in power by 5% i.e INR 0.25/Unit also support the rise in prices.
In other parts of the country, there was favorable demand in supporting the prices. According to the manufacturers with good demand there are no inventories available with the manufacturers which is forcing them to continuously surge the prices.
Wire Rod
With average demand, falling production and increase in billet prices have compelled the manufacturers to increase their prices.
According to the sources, there is shortage of the Wire Rod in the eastern region as the wire rod manufacturers are producing rebar as the demand is good in bars with a good conversion from billet to rebar (Reference: Billet to 12mm Rebar is INR 5,000/MT in Durgapur, eastern region).
Outlook for Week 15
The rebar prices are likely to remain on increasing mode as demand is favorable amid anticipation of upsurge in billet prices.
In addition, expectation for further surge prices by large producers is making positive trends in the domestic market which may result in healthy trade activities in days to come.
Domestic Rebar (12 mm) and Wire Rod(5.5 mm) Prices as on 01 Apr’17
| Region | City | Rebar (12 mm) | W-o-W | Wire Rod (5.5mm) | W-o-W | ||
| 25th Mar | 1st Apr | 25th Mar | 1st Apr | ||||
| Central | Raipur | 32,100 | 32,900 | +800 | 32,600 | 33,300 | +700 |
| East | Durgapur | 31,400 | 31,900 | +500 | 31,000 | 31,500 | +500 |
| North | Gobindhgarh | 34,000 | 34,400 | +400 | – | – | – |
| South | Hyderabad | 33,000 | 33,000 | 0 | – | – | – |
| West | Mumbai | 32,000 | 32,400 | +400 | – | – | – |
Basic (Ex- Works) prices in INR/MT, excise duty & other taxes extra
Source: SteelMint Research
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