Domestic rebar prices have declined by 7-9% in Oct’15 in-line with fall in billet prices.
Indian secondary rebar makers have been declining prices continuously since Apr’15. Prices have touched an all time low and as days are passing, it seems that prices are hitting rock bottom, as per market participants. Average rebar prices have declined by 16-20% during Apr’15-Oct’15.
Major price correction of 20% is seen in east India, followed by west and central India by 18% and south India by 16% in the same period.
In Oct’15, rebar prices have fallen by around 7-9% across major Indian markets compared to Sept’15 due to fall in billet prices. In global market, Chinese rebar FoB prices have declined by USD 5/MT M-o-M and by USD 95/MT during Apr’15-Oct’15.
Primary rebar producers have been also lowered down their offers by INR 4,000-5,000/MT since Apr’15.
JSW Steel is aggressive selling material in western market. As a result, secondary producers are reducing their offers in project sales. Primary producers’ prices are almost equivalent to secondary producers’ offers especially in west India. Earlier, the price gap between them were INR 2,000/MT.
Indian billet and rebar offers as on 2 Nov’15
|
Region |
City | Billet | M-o-M | 12 mm Rebar |
M-o-M |
| Central | Raipur | 20,200 | – 2,450 | 23,500 | – 2,300 |
| Eastern | Durgapur | 20,450 | – 1,950 | 23,300 | – 1,200 |
| Western | Mumbai | 21,800 | – 1,700 | 25,200 | – 1,000 |
| Jalna | 21,800 | – 1,550 | 25,100 | – 1,500 | |
| Northern | Gobindgarh | 23,300 | – 2,650 | 28,300 | – 2.200 |
| Southern | Hyderabad | 22,000 | – 1,500 | 24,300 | – 1,700 |
| Bangalore* | 22,000 | – 1,330 | 26,600 | – 1,400 |
Basic prices in INR/MT; excise duty and CST/VAT extra
* Ingot price
Source: SteelMint Research
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