In a row the rebar price touch 18 month high in Raipur, Central India which is a hub of small and medium scale manufacturers.
Rebar price increases up to INR 2,100/MT W-o-W and INR 2,000 M-o-M as the prices touch 18 month high which was last seen in Jul’15. However there is mix view by manufacturers on demand.
“Present increase in price is due to input cost, demand remain stagnant. Our conversion has reduced to INR 300-400/MT compare to last month in the last one week” said a Raipur based small scale producer. Raipur based all rolling mill reported increase capacity utilization as price gain momentum.
It should be noted that rolling mills in Raipur production was disturbed as they received pollution notice on 8-10 Feb’17 that has now been deferred by 6 month. Pollution department given grace period as manufacturers assured to reduce pollution.
“Rebar demand has increased in Maharashtra and we are expecting price to remain robust for Feb-Mar’17” said Mumbai based small scale producer & price setter as well.
Price Gap Large and Small scale Narrowed: Price gap narrowed to INR 4,000/MT from earlier month of INR 5,000-6,000/MT. It is also learned that few large producer floated discount of INR 500-700/MT to distributor to push the sales. Present Large scale producer 12MM price Ex Mumbai are at INR 34,000-34,500/MT and Small scale producer at INR 30,500/MT. (ED & VAT/CST extra)
Conversion spread Squeeze: Rebar price presently increasing in line with rising Ingot/Billet price. Present month average conversion spread from Billet to TMT remain at INR 2,900/MT from past two months (Ex Raipur). It should be noted here Raipur Billet premium over Ingot has increased currently from earlier INR 600 to INR 1,000-1,200/MT. However, in Mumbai conversion from Billet decreased marginally by INR 100 to INR 3,700/MT
According to Industry participants, Rebar price are expected to remain range bound at present level as input cost will remain robust in near term. Price may also gain momentum, if large scale producer increase price in Feb’17 which is not likely happen.
Indian Rebar Prices as on 23 Feb’17
| Region | Cities | Prices | D-o-D | W-o-W | M-o-M |
| North India | Ex-Delhi/NCR | 30,800 | + 500 | +500 | -200 |
| Ex-Mandi Gobindgarh | 31,800 | 0 | +600 | 0 | |
| East India | Ex-Durgapur | 27,900 | + 300 | +900 | +1,200 |
| Central India | Ex-Indore | 30,800 | + 300 | +800 | +800 |
| Ex-Raigarh | 28,400 | + 150 | +600 | +1,200 | |
| Ex-Raipur* | 28,700 | + 300 | +800 | +1,500 | |
| West India | Ex-Ahmedabad | 28,500 | 0 | +600 | +600 |
| Ex-Goa | 29,800 | 0 | +900 | +500 | |
| Ex-Jaipur | 30,300 | + 200 | +1,300 | +800 | |
| Ex-Jalna | 29,600 | + 200 | +500 | +100 | |
| Ex-Mumbai | 30,600 | + 300 | +600 | +400 | |
| South India | Ex-Bangalore | 32,100 | + 900 | +2,100 | +2,000 |
| Ex-Chennai | 29,800 | + 500 | +1,800 | +1,400 | |
| Ex-Hyderabad | 29,500 | 0 | +1,000 | +500 |
Basic prices in INR/MT
Source: SteelMint Research
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