Indian rebar manufacturers based in secondary market has increased offers by INR 1,000-2,500/MT after the day government announced demonetization of INR 500 and INR 1,000 on 8 Nov’16.
As per the market participants, buyers are not interested to take position at current price rise by the manufacturers due to severe shortage of funds.
On W-o-W basis, prices hike is mainly seen in all major Indian rebar market like Raipur (+1,000), Mumbai(+1,200), Hyderabad (+2,000), and Banglaore (+2,500). However, prices marginally fallen seen in East India i.e. Durgapur (-400).
As per the monthly data maintained by JPC under Ministry of Steel, India’s total production of bar and rod was about 33 MnT during Apr-Mar’16, out of which 11 MnT consist of large steel players like SAIL, RINL, Tata steel, JSW steel, JSPL. Remaining 22 MnT is produced by mini and other producers.
It indicates that larger market of long steel product is under the secondary market which is severely affected than the primary market in small to medium term.
In the coming days, secondary rebar market is likely to convert their trade more in formal or organised way as it worked mostly on cash based system. So, Indian rebar manufacturers including small, medium and large ones will largely follow international market trend.
At present, China rebar export prices stood at USD 400-405/MT FoB main port which has increased by about USD 50/MT in the last one month.
Indian billet and rebar prices as on 15 Nov’16
| Region | City | Billet | W-o-W | 12 mm Rebar | W-o-W |
| Central | Raipur | 21,700 | -400 | 25,600 | +1,000 |
| Eastern | Durgapur | 21,400 | -500 | 23,600 | -400 |
| Western | Mumbai | 24,000 | +600 | 27,900 | +1,200 |
| Ahmedabad | 23,200 | -500 | 24,800 | 0 | |
| Northern | Gobindgarh | 24,400 | -500 | 29,000 | +300 |
| Southern | Hyderabad | 25,000 | +1,500 | 26,400 | +2,000 |
| Bangalore* | 24,200 | +1,200 | 30,900 | +2,500 |
Basic prices in INR/MT, excise duty & other taxes extra
Source: SteelMint Research
Note: Prices are basic and till 15 Nov’16
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