Rebar manufacturers are under pressure owing to increase in inventory level amid sluggish demand.
Secondary rebar manufacturers have reduced offers by INR 400-1,000/MT across India in a week owing to weak domestic market sentiments. Major fall of INR 1,000/MT has been seen across India and a price correction of INR 500/MT is seen in west India.
Raipur is a major hub of rebar producers in central India and supply material mostly to neighbouring states like Madhya Pradesh and border of Maharashtra. The state is currently facing low demand from these states.
As per sources, amid recent sand mining ban in MP, construction activities remain to be stand still. As a result, trade activities are minimal here.
Few deals took place by traders in Raipur last week at INR 25,800-26000/MT (excise duty and other taxes extra) for 12 mm rebar.
It seems that huge selling pressure in Indian market is likely to pressurize prices further. Thus, participants prefer to stay away from current market scenario.
As per a rebar manufacturer based in Jalna, “Presently, there is subdued rebar demand in the market, which in turn has increased our inventory level; creating additional pressure.”
Indian billet and rebar offers as on 7 Oct’15
| Region | City | Billet | W-o-W Change | Rebar# | W-o-W Change |
| Central | Raipur | 22,100 | – 900 | 25,100 | – 900 |
| Eastern | Durgapur | 22,000 | – 950 | 24,500 | – 900 |
| Western | Mumbai | 23,200 | – 500 | 26,700 | – 300 |
| Jalna | 23,100 | – 700 | 26,300 | – 400 | |
| Northern | Gobindgarh | 25,300 | – 700 | 30,100 | – 900 |
| Southern | Hyderabad | 23,000 | – 1,000 | 25,500 | – 1,000 |
| Bangalore* | 23,300 | – 400 | 27,800 | – 300 |
Basic prices in INR/MT for 12 mm; excise duty, CST/VAT extra
*Ingot price
Source: SteelMint Research
Note: The analysis is done on the basis of data maintained by SteelMint since Oct’10.
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