Secondary rebar manufacturers decreased their offers during May’16 by INR 600-2,000/MT following a price fall in Apr’16 by 400-1,500/MT.
Indian rebar prices in the secondary market continued to fall during May’16 as manufacturers continuously faced selling pressure owing to weak buying. Seasonal heat and low availability of labour also affected constructional activities.
Rebar prices during May’16 slipped majorly in South India by INR 2,000/MT, followed by Central and East India by INR 900/MT and West India by INR 600/MT in the secondary market.
Currently, rebar prices in Indian secondary market is hovering at the same level which was lastly seen in 1st week of Feb’16 or at the time of MIP implemented.
A rebar manufacturer based in Chennai mentioned, “Sales of rebar were severely impacted in May’16 as states elections around the state were one of the major reason behind slow down in the constructional activities”.
Alongside, conversion gap between billet and rebar is slightly increased in Mumbai by about 10% in May’16 against Apr’16 on a monthly average basis.
Indian billet and rebar prices as on 1 June’16
| Region | City | Billet | M-o-M | 12mm Rebar | M-o-M | Monthly Average rebar prices (May’16) | Monthly Average rebar prices (Apr’16) | % Change | Monthly Average conversion spread (May’16) | Monthly Average conversion spread (Apr’16) | % Change |
| Central | Raipur | 21,250 | -700 | 24,100 | -900 | 24,600 | 25,700 | -4% | 3,000 | 3,100 | -3.2% |
| Eastern | Durgapur | 21,300 | -950 | 24,000 | -900 | 24,400 | 24,600 | -1% | 2,600 | 2,500 | +4% |
| Western | Mumbai | 22,900 | -800 | 26,400 | -600 | 26,700 | 27,600 | -3% | 3,400 | 3,100 | +9.7% |
| South | Hyderabad | 22,350 | -2,000 | 25,300 | -2,000 | 25,700 | 28,000 | -8% | 2,800 | 2,800 | 0% |
Basic prices in INR/MT; excise duty and CST/VAT extra
Source: SteelMint Research
Note : Prices are basic, excise duty & other taxes extra
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