Secondary rebar manufacturers decreased their offers during Apr’16 by INR 400-1,500/MT. Whereas in Mar’16, prices had increased by the same amount.
With the start of new fiscal year, Indian secondary rebar manufacturers reported sluggish sales during Apr’16 as compared to previous month.
Rebar prices during Apr’16 slipped majorly in south India by INR 1,400/MT, followed by central India by INR 1,100/MT and east India by INR 400/MT in the secondary market.
However on a monthly average basis, there are no major changes seen in the same locations due to volatile market.
Few rebar mills based in Maharashtra, especially Latur and Marathawada are heard to temporary curtail their production and few to shutdown mills due to sever shortage of water, which got edge to the rebar manufacturers based in Raipur during last month.
Raipur, one of the largest rebar suppliers to MP, has halted its sales from the last one month due to unavoidable issue in border areas between Chhattisgarh and MP. The same situation is still persist in the current scenario.
A rebar manufacturer based in Raipur said, “Sales of rebar were supportive last month, majorly from south India, including Karnataka, Tamil Nadu, Kerala and Telangana due to better viability.”
Conversion gap between billet and rebar has slightly increased in Raipur, but remains unchanged in other markets like Durgapur, Mumbai and Hyderabad.
Indian billet and rebar prices as on 2 May’16
| Region | City | Billet | M-o-M | 12mm Rebar | M-o-M | Monthly Average rebar prices (Apr’16) | Monthly Average rebar prices (Mar’16) | % Change | Monthly Average conversion spread (Apr’16) | Monthly Average conversion spread (Mar’16) | % Change |
| Central | Raipur | 22,050 | -1,350 | 25,100 | -1,400 | 25,700 | 25,500 | +0.8% | 3,100 | 2,900 | +6% |
| Eastern | Durgapur | 22,550 | -400 | 25,000 | -400 | 25,200 | 24,900 | +1.2% | 2,500 | 2,600 | -3% |
| Western | Mumbai | 23,700 | -700 | 27,100 | 0 | 27,500 | 27,500 | 0% | 3,100 | 3,000 | +3.3% |
| South | Hyderabad | 25,000 | -1,000 | 27,300 | -1,100 | 28,000 | 27,800 | +0.7% | 2,800 | 2,800 | 0% |
Basic prices in INR/MT; excise duty and CST/VAT extra
Source: SteelMint Research
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