In Jun 2017, Long steel prices in India remained volatile due to the two major factors i.e fluctuating Ingot/billet prices and persistent bearish trends globally.
In the month, the proportion of price movement in long steel (rebars) remained similar than the ingot and billet offers.
Hence, this fluctuating offer has not affected the conversion (margins) of Indian re-rollers as it was remained almost firm in month of Jun’17 as compared to May’17; which in turn helped the large number of manufacturers to operate their mills on full capacity in order to extract maximum margins.
The conversion from billet to 12 mm rebars in various regions for Jun’17 was witnessed at INR 3,500-3,800/MT in Western Region- Mumbai, INR 4,200-4,400/MT in Central Region – Raipur and INR 3,600-3,800/MT in Eastern Region – Durgapur. (considering monthly average offer price of rebar & billet in Jun’17).
The Medium and small scale players have been growing progressively day by day, as Indian Government is taking all types of protective measure to safe guard the Indian Steel Industry. This is another motivational move which is helping the manufacturers to increase their production rigorously.
In May’17, Indian Medium and Small Scale Industries manufactured 2.95 MnT which is 57% of total bar and rod production of 3.10 MnT in India.
Sources: SteelMint Research
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