Primary Rebar manufacturers are continuously facing selling pressure because of sluggish demand from construction industry.
Primary Rebar makers have been continuously declining the prices since last 5 months. The prices have corrected by INR 6,000-7,000/MT in this duration on the grounds of low demand and less stocking made by dealers.
SteelMint in a conversation with JSW Steel’s Director (Commercial & Marketing) Mr. Jayant Acharya learnt, “Market is likely to pick up in the second half of 2015 or a little earlier. As far as the matter concerning the withdrawal of rebate on certain Boron added steel by the Chinese government, no such major impact is expected in the Indian steel market.”
Mr. Acharya further added that Rebar demand is not encouraging in the domestic market.
Imported Rebar (Boron added- Alloys Steel) from China, which has been dumped in the Indian markets since Apr’14, has touched about 0.96 MnT till Nov’14. These imported Rebars are selling at a very competitive rates that has compelled the primary Rebar manufacturers to reduce the prices since Sep’14.
Recently, the Chinese government has withdrawn rebate on certain Boron added steel, which ranges from 9-13%.
Note: 12 mm Rebar price of primary Rebar manufacture, Excise duty and other taxes extra
Secondary Rebar Makers’ Production fall to 60-70% Level
SteelMint in conversation with the manufacturers assessed that production of Rebar remains at the level of 60-70% owing to low buying and liquidity crunch in the market.
The market is not expected to improve in the coming days due to pressure on semi finish prices as a fall in Sponge iron as well as Pig iron prices has been seen owing to improved supply of Iron ore in the domestic market.
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