Domestic rebar market registered a sharp price rise from INR 1,000-2,100/MT, 3-7% (USD 17-32) in Apr’17, M-o-M.
During the month major price hike is seen in Durgapur by INR 2,100/MT followed by Mumbai INR 1,100/MT and Hyderabad & Raipur at INR 1,000/MT.
The manufacturers across the country stated that there was no stock available with them in the start of the month over good demand.
In later April the demand started to subdue; increasing in stock level with the manufacturers and traders which resulted in the rigorous plunge in the prices.
Highlights
The manufacturers in domestic market especially in East and Central regions were able to extract good profits as conversion from billet to 12mm Rebar was considerably increased. This also forced many wire rod producers (possessing re rolling mills) to start the production of rebar.
The Hot rolling mill operators have reduced billet sales in open market as the conversion from billet to rebar margins were quite strong considerably rather to sell billet directly in open market.
Average Prices & Conversion Spread (Mar-Apr’17)
|
Markets |
Monthly Average |
Monthly Average |
M-o-M (Rebar Changes) |
Changes |
Conversion Spread |
Changes |
|||
|
Apr’17 |
Mar’17 |
Apr’17 |
Mar’17 |
Apr’17 |
Mar’17 |
||||
|
Durgapur |
27,000 | 25,700 | 32,000 | 29,900 | +2,100 |
7.0% |
5,000 | 4,200 |
19.0% |
|
Mumbai |
29,300 | 28,000 | 32,800 | 31,700 | +1,100 |
3.5% |
3,600 | 3,600 |
0.0% |
|
Hyderabad |
28,900 | 28,100 | 32,800 | 31,800 | +1,000 |
3.1% |
3,800 | 3,600 |
5.6% |
|
Raipur |
27,300 | 26,600 | 31,800 | 30,800 | +1,000 |
3.2% |
4,500 | 4,200 |
7.1% |
Basic (Ex- Works) prices in INR/MT, excise duty & other taxes extra
Source: SteelMint Research
Leave a Reply