As per SteelMint assessment, rebar price gap between the large & medium/small scale mills is currently hovering at INR 6,000-7,000/MT (USD 85-98), slightly increased as against Oct’18 at INR 5,000-6,500/MT (USD 71-92), considering Delhi/NCR & Mumbai location.
The prime reason behind the widening price gap between the producers is sharp fall in rebar prices by medium/small mills, which recorded a slump of INR 1,000-2,000/MT during the second half of Nov’18 on account of weak demand amid declining Billet prices.
On the other hand, large mills have announced rolled over rebar prices in the beginning of Nov’18, however during the mid of month few large mills had started offering discount or reduced prices by INR 500-750/MT in order to push sales.
So far in the month, rebar prices by medium/small mills have decreased by about INR 1,000-1,500/MT in South India, INR 2,000/MT in East and Northern India, INR 500/MT in Western region & INR 1,500/MT Central part of India.
Currently in Mumbai – large mills are offering rebar at INR 43,000-43,500/MT, while offers through the medium/small scale mills stood at INR 36,300-36,600/MT. The prices are for 12-25 mm size, ex-work & excluding GST at 18%.
Similarly in Delhi – the large mills are offering rebar at around INR 43,500-44,000/MT, although the offers by medium & small scale mills hovering at INR 36,800-37,100/MT for the same size material.
What May Happen?
As per Industry leaders, still there is scope of further fall in long product prices due to low buying from stockiest & end-user segment. In addition ongoing assembly elections in following states i.e. Madhya Pradesh, Mizoram, Telangana & Rajasthan will keep the new constructions in halt till Dec’18 mid.
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