Re-bar offers are more or less same from last two weeks. Re-bar manufacturers are unwilling to make any major changes in Re-bar prices.
Why Re-bar prices are stable?
As per SteelMint survey, the reasons are:
1) Reduced Demand from Nearby States
Chhattisgarh: A Re-bar manufacturer based at Raipur said, “Re-bar supply from Raipur to nearby states have declined. Raipur supplies Re-bar to most of the Indian cities, in which Madhya Pradesh (MP) is a major market for it.
He added further, Re-bar supply to MP has diminished owing to strict tax checking (without bill supply) in MP border. Along with this MP Re-bar buyers are not getting enough profit margins on buying from Raipur.”
2) Expensive Raw Material
Maharashtra: Semi Finish offers are stable across India. Mumbai & Jalna based Re-bar manufacturers said, “Demand is dull, but owing to high price of Ingot/Billet we are not able to cut Re-bar prices as conversion margin has already got down.”
3) Election scheduled in May’14 held the new government projects. Primary producers are shifting to open market as there are less project sales. RINL sold Re-bar from its Ahmedabad, Ludhiyana & Hyderabad stockyards in its recent open auction.
4) Primary Re-bar Manufacturers like JSPL, SAIL & Monnet are increasing their productions.
Ingot & Re-bar Prices as on 18 Feb, 2014
|
City |
Ingot |
Change |
Re-bar 12 mm |
Change |
|
Muzaffarnagar |
33,200 |
+ 100 |
35,200 |
– 300 |
|
Durgapur |
30,000 |
– 50 |
33,400 |
– 100 |
|
Raipur |
29,900 |
0 |
33,900 |
– 150 |
|
Mumbai |
32,250 |
+ 50 |
35,500 |
0 |
|
Ahmedabad |
33,250 |
+ 450 |
36,850 |
+ 150 |
|
Hyderabad |
32,000 |
0 |
35,900 |
– 200 |
|
Chennai |
32,500 |
0 |
36,900 |
0 |
Note: Basic Price in INR/MT
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