Price gap between billet and rebar in Mumbai has reduced to a large extent.
Secondary rebar manufacturers in Mumbai are bounded to decrease their offers from last two weeks as supply outskirts demand from Wada and Jalna.
Mumbai based rebar manufacturers have reduced their offers by around INR 1,500/MT since 10 Mar’16 and presently offering at INR 26,800-27,000/MT(basic price) for 12 mm.
Surprisingly, rebar prices in Mumbai are currently lower than Hyderabad by around INR 500/MT, which were used to be higher earlier.
As per a large rebar manufacturer based in Mumbai, “Presently, one of the largest rebar manufacturer based in Mumbai has increased its production recently that has created excess supply in the market. Thus, leading to further pressure on prices.”
He also added that , currently, price gap between billet and rebar (floor/open price) is just INR 800/MT, which should be around INR 1,200/MT.
Indian billet and rebar prices as on 23 Mar’16
|
Region |
City | Billet | D-o-D | 12 mm Rebar |
D-o-D |
| Central | Raipur | 22,200 | +100 | 25,000 | +50 |
| Eastern | Durgapur | 21,850 | 0 | 24,600 | 0 |
| Western | Mumbai | 23,800 | +100 | 27,000 | +200 |
| Ahmedabad | 24,700 | 0 | 27,400 | 0 | |
| Northern | Gobindgarh | 25,100 | +100 | 29,600 | 0 |
| Southern | Hyderabad | 24,500 | 0 | 27,300 | 0 |
| Bangalore* | 23,300 | 0 | 30,500 | 0 |
Basic prices in INR/MT; excise duty and CST/VAT extra
* Ingot price
Source: SteelMint Research
Note: Price are basic, excise duty & other taxes extra
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