India: Rebar Prices in Raipur hit 1-year Low

Rebar demand continues to remain sluggish in the 4^th week of Jan’15 as prices fall by INR 500-800/MT W-o-W across India.

Sponge based Market

Central India’s Rebar production capacity is around 4.6 MnT pa. In Raipur, Rebar prices continue to move in a downward direction and hit almost 1-year low because of sluggish demand. Currently, the material is offered at INR 31,000/MT; has fallen by INR 300/MT W-o-W owing to decrease in Ingot/ Billet prices in the same period.

In Eastern based markets like Durgapur and Rourkela, Rebar is offered at around 30,200/MT, which is the lowest level among all Indian Rebar markets.

As per leading Rebar maker in Raipur, “Rebar demand is dull and it is trading at its lowest price. We are also waiting for CG High Court’s decision on CST; whether it will be 1% or 2%.”

Scrap based Market

In Western market like Mumbai, prices have fallen by INR 400/MT to INR 33,000/MT owing to fall in Ingot/Billet prices by INR 400/MT W-o-W coupled with low buying sentiments. Whereas in Ahmedabad, Ingot prices have slumped by INR 1,050/MT and Rebar by INR 800/MT W-o-W and offered at INR 33,100/MT.

A Rebar trader in Mumbai, “Currently, Rebar sales is weak and it is expected to remain under pressure shortly owing to softening of imported Scrap & Billet offers.”

New gauge difference in Gujarat is also postponed looking at dull market sentiments. As per new gauge difference, produced material by the state will be expensive by INR 700-1,500/MT compared to Mumbai & Raipur origin material.

Weekly MS Ingot and 12 mm Rebar Prices

Basic price in INR/MT as on 24 Jan’15
Excise duty & VAT/CST extra

Note: Above all prices are of 12 mm Rebar