Indian Rebar Price Remain Volatile in Feb’17

Domestic rebar market on monthly average basis experienced a price movement of INR 200-600/MT (USD 3-9).

During Feb’17, the major price change have seen in Western region in Mumbai where it fell by INR 600/MT following the price fall in Durgapur, East India by INR 300/MT & in Hyderabad, South India by INR 500/MT. Where as in Raipur , Central India it surge by INR 200/MT.

In the beginning of the month the demand was sluggish and this resulted in the downfall in prices. The reason for low demand in initial days was the election season in North and East States and the market was expecting a major change with the Budget.

From the mid of the month, the prices took pace and kept on increasing continuously as the demand as well as inquiry were on rising mode.

A well known manufacturer in Raipur stated that “The plants were on full production as there was surplus demand with no pre-stock inventory available with them.”

Analyzing, the rebar manufacturers margins (conversion spread) from billet to rebar it was almost remained firm at INR 2,900/MT in Raipur, INR 3,700-3,800/MT in Mumbai & INR 3,500/MT in Hyderabad which is similar against Jan’17 spread. Despite fall in basic prices in Durgapur conversion spread surge at INR 3,000/MT from earlier in Jan’17 at INR 2,600/MT.

Outlook for March’17

– Medium and small scale players are waiting for the Large scale producers fresh prices for Mar’17 to take position.

– Moreover the market is anticipated to remain volatile as prices are in the higher range and the persuing season considered as the peak time for the construction works.

Average Prices for 12mm Rebar & Billet

Basic prices in INR/MT, excise duty & other taxes extra
Source: SteelMint Research