As per SteelMint assessment, rebar price gap between the large & medium/small scale mills is currently hovering at INR 4,000-4,500/MT (USD 57-64), which has fallen sharply as against INR 6,000-7,000/MT (USD 85-100) in Nov’18, considering Delhi/NCR & Mumbai location.
The prime reason behind the decrease in price gap between the producers is sharp fall in rebar prices by large mills, which recorded fall upto INR 2,000/MT during Dec’18 on account of low buying from end-users amid healthier supply.
On the other hand, medium & small mill scale mills have seen volatility in prices during the period. So far in Dec’18, rebar prices by medium/small mills have seen major fall in Eastern India by about INR 1,500/MT (USD 21). While in rest of domestic markets like West, North, South and Central India seen marginal change in prices by INR 100-500/MT.
Currently in Mumbai – large mills are offering rebar at INR 40,500-41,000/MT, while offers through the medium/small scale mills stood at INR 36,500-36,700/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 41,000-41,500/MT, although the offers by medium & small scale mills hovering at INR 37,100-37,500/MT for the same size material.
What May Happen?
As per the market participants, few large mills may further cut rebar prices in the beginning of Jan’19 looking at over-supply situation and sufficient stock in hand with the dealers/stockist.
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