Indian Rebar prices trade sideways in April
Indian Rebar prices remained range bound in last one month. Average prices of Secondary steel makers in April’15 for 12 mm Rebar were recorded at INR 31,900/MT ex-Mumbai, INR 30,300/MT ex-Raipur, INR 30,200/MT ex-Durgapur, INR 32,000/MT ex-Chennai, INR 30,200/MT ex-Hyderabad and INR 32,700/MT ex-Delhi. Increased production of Sponge iron and Billet kept Rebar prices under check.
Primary steel makers maintained their offers for April, but had cut prices by INR 500-700/MT for March in retail market.
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Monthly Average 12 mm Rebar prices |
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| Mumbai | Raipur | Durgapur | Chennai | Hyderabad | Delhi | |
| Feb’15 | 32,600 | 30,400 | 30,000 | 32,600 | 31,300 | 33,100 |
| Mar’15 | 31,700 | 30,200 | 30,700 | 32,400 | 31,000 | 32,600 |
| Apr,15 | 31,900 | 30,300 | 30,200 | 32,000 | 30,200 | 32,700 |
| Prices as on 30 Apr’15 | 31,400 | 29,500 | 29,200 | 31,500 | 30,500 | 31,600 |
Basic prices in INR/MT
Source: SteelMint Research
Re-bar Imports slow down
Imports of Rebar have slowed down from China due to narrowing price difference between landed cost of imported and domestic prices. Importers are hesitant as they fear Indian government may impose some kind of duty to restrict imports. Imported rebar (12 mm) offers are at INR 29,500-30,000/MT + Excise + VAT at Ex-yard Chennai and Vizag port.
Market participants anticipate some stability in domestic steel prices owing to depreciating Rupee and recovery in global Crude oil and Iron ore prices.
Indian bar & rod imports were recorded at 1.6 MnT in FY15, however imports have been down in last 2-3 months owing to currency fluctuation and reduced parity between domestic and global prices.
Indian Steel Imports surged 65-70% in FY15
Indian steel imports surged about 65-70% in 2014-2015 due to lower prices in global market. Indian steel imports recorded at over 9 MnT in 2014-2015, which was at 7.38 MnT in 2009-10, 6.66 MnT in 2010-11, 6.86 MnT in 2011-12, 7.93 MnT in 2012-13 and 5.45 MnT in 2013-14.
Wire Rods
Wire rod prices decreased in Raipur in line with falling Billet prices, however, Wire rod prices in Durgapur went up, after one of SAIL’s Wire rod mill went on maintenance.
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Monthly Average 5.5 Wire Rod Prices |
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| Raipur | Durgapur | |
| Feb’15 | 31,600 | 30,800 |
| Mar’15 | 30,600 | 31,300 |
| Apr,15 | 30,300 | 31,400 |
| Prices as on 30 Apr’15 | 29,200 | 30,200 |
Basic prices in INR/MT
Source: SteelMint Research
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Monthly Average Structure prices |
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| Raipur | Mumbai |
Ghaziabad | |||||
| 200 B | 40*40A | 75*40 C | 200 B | 40*40A | 75*40 C | 200 B | |
| Feb’15 | 31,400 | 30,500 | 30,000 | 34,200 | 32,700 | 33,600 | 34,500 |
| Mar’15 | 31,300 | 30,200 | 29,900 | 33,800 | 32,400 | 32,600 | 34,300 |
| Apr,15 | 31,000 | 30,300 | 30,010 | 34,000 | 32,600 | 33,100 | 34,200 |
| Prices as on 30 Apr’15 | 30,300 | 29,600 | 30,300 | 33,600 | 32,200 | 32,700 | – |
Basic prices in INR/MT
Source: SteelMint Research
Indian Billet Prices hit a 4 Year Low
Indian billet prices hit a 4 year low on Tuesday, with prices at Mandi Gobindgarh (Punjab), which is considered a benchmark for Secondary steel makers, hit INR 30,000/MT(basic price). Traders and manufacturers expect resistance at current levels owing to rising Scrap offers in global market.
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