Sluggish Re-bar demand has reduced the conversion spread in Durgapur.
Re-bar prices in Durgapur had fallen by almost INR 2,000/MT in the last one month owing to fall in demand from the end-users and subsequent decline in Ingot & Billet (raw material for Re-bar) prices by around INR 1,000-1,300/MT. Among all major markets, eastern region is mostly affected including Rourkela.
Currently, Re-bar prices in Durgapur & Rourkela is almost INR 35,000/MT and INR 34,500/MT respectively, which is cheaper than any other major market. This brings an opportunity for other neighboring state to purchase Re-bar from the eastern market especially from the North where prices are high due to shortage of raw material.
The conversion spread has also fallen in Durgapur from around INR 4,000/MT to INR 3,500/MT since last one month, which shows that demand of Re-bar has slowed down.
According to the few Re-bar manufacturers, market seems to be stable till the budget and direction will be clearer after the announcement.
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