Since last couple of weeks the Semis finished steel i.e. sponge and Ingot/billet offers are constantly on rising mode. Hence, this have forced rebar producers to increase their offers even though demand is stagnant due to heavy monsoons in major parts of India.
As per SteelMint price assessment, since the start of Aug 2017, domestic billet offers rose upto INR 1,400/MT (USD 22) and following the trend Rebar offers also increase around INR 600-1,200/MT (USD 6-18) across major markets of India.
In this period maximum hike in rebar offers was seen in the Central Region – Raipur by INR 1,200/MT (USD 18) followed by the Eastern Region – Durgapur and Southern region – Hyderbad by INR 1,000/MT(USD 15) and Western Region, Mumbai by INR 800/MT (USD 12)
“Amid decrease productions, inventories are relatively on higher end (approximately 2-3 times more than average managed), although the offers are increasing owing to higher input cost like costlier billet and scrap/sponge affecting the conversion margins” medium size re-rollers in Central India – Raipur & West India – Mumbai reported.
Another reason for the rise in offers sited by sources that is hike in rebar offers by the large scale producers up to INR 1,000/MT (USD 15) for Aug’17 deliveries.
As per the sources based in Gujarat – Western Region & in Chennai – South India, few of the producers have started to export billet & rebar to South East Asian Countries due to higher realization through exports.
12 mm Rebar and Billet Reference Prices as on 9 Aug’17
| Regions | Rebar Prices | W-o-W | Billet Prices | W-o-W |
| Raipur | 30,000 | +1,200 | 27,600 | +1,400 |
| Mumbai | 31,600 | +800 | 28,200 | +1,000 |
| Durgapur | 30,000 | +1,000 | 27,500 | +1,300 |
| Hyderabad | 32,000 | +1,000 | 28,500 | +1,000 |
| Delhi | 33,600 | +600 |
Ex-Works prices; GST at 18% extra
Source: SteelMint Research
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