Delayed monsoon across India, abnormal cement price hike in southern region and power shortage in steel units, which is due to reduction in power supply from NTPC on inadequate Coal stocks in most of the regions, are some of the reasons that had supported Re-bar prices in the starting of the month. However at present, arrival of monsoon holds the construction activities that led to fall in Re-bar demand.
Highlights of Secondary Re-bar (12 mm) Market for Jul’14
|
Region |
Market |
Price |
Correction |
Remarks |
|
East |
Durgapur |
34,600 |
– 400 |
Slight decrease in prices |
|
West |
Mumbai |
34,600 |
– 1,300 |
Prices correct on slowdown in construction works because of monsoon arrival. These markets hit largely. |
|
Jalna |
35,600 |
– 500 |
||
|
Ahmedabad |
36,200 |
– 700 |
||
|
North |
Muzaffarnagar |
38,000 |
– |
Gauge parity changes from 12 mm to 20 mm in North; base price has decreased by INR 500/MT. |
|
South |
Chennai |
37,300 |
– |
Prices remain stable in July, 2014 |
|
Hyderabad |
35,500 |
– 1,000 |
Division of two states had affected both the market; CST imposition and recent cement price hike have forced builders association to stop works for few days. |
|
|
Central |
Raipur |
35,200 |
– 500 |
Power cut continues for last 10-12 days, whereas weak demand reduces Re-bar prices. |
|
Raigarh |
34,800 |
– 600 |
||
|
Indore |
37,400 |
– 1,700 |
Steep decline in prices owing to entry tax cut from 5% to 2%. |
Basic price in INR/MT as on 18 Jul, 2014
Grade-Fe 415
Primary Re-bar Producers may cut Prices in Aug’14
Primary Re-bar producers are likely to decrease their prices in the next month, owing to low demand. Some of the leading primary producers had already increased their prices by around INR 500/MT in the current month owing to increase in freight and input costs.
Primary Re-bar Prices for Jul’14
|
City |
Price |
|
Delhi |
42,700 |
|
Mumbai |
42,800 |
|
Chennai |
43,000 |
|
Hyderabad |
43,100 |
Basic price in INR/MT; excise duty & VAT extra
Source : SteelMint
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