India: Secondary Re-bar prices fall by 5-7% M-o-M

Secondary TMT Re-bar prices have decreased by almost 7% in most of the markets in the last one month owing to drastic fall in demand by end user.

Secondary TMT Re-bar prices have decreased by an average of 5-7% in most of the markets compared to the last month prices. The major factors for price correction are high volatile market in cities that has postponed the buying, falling MS Ingot prices, low construction demand and less interest of traders to restock owing to monsoon season.

The sluggish demand of TMT Re-bar in various domestic markets have reduced the prices to a large extent because of slowdown in construction activities, which generally occurs in the monsoon and it seems to be remain same for the next month also.

Manufacturers & traders are also eagerly waiting for the final budget to come, so that it gives some direction to the market. Although, TMT prices were highly volatile in some of the market especially in Sponge based region (eastern & central) within last 4-5 days owing to continuous fall in MS Ingot & Billet prices.

SteelMint, to check inventory & demand, has done a survey by speaking to 13 manufacturers across India. Let’s know the result.

Production: Due to low demand, major local manufacturers have cut the production, whereas major secondary producers are still running the plant in 80% capacity.

Inventory:  Inventory at manufacturing end is low on production cut. As per estimate, inventory is for 3-4 days of production per day.

Demand: Re-stockiest demand remains cautious in rural area, whereas project demand remains firm.

Price Change of TMT Re-bar & MS Ingot in Major Market M-o-M