Demand of rebar in central India better as compared to other parts of India; Eastern India faces major fall in prices.
Rebar prices have declined by INR 300-600/MT W-o-W across India. Major fall was noticed in eastern region of India, especially Durgapur, where prices went down by INR 600/MT owing to fall in billet prices by INR 700/MT W-o-W. In central India, prices in Raipur declined slightly by INR 200/MT.
Demand of rebar in central India was good in the current week and buying activity was majorly seen within the state. As per a rebar manufacturer based in Raipur, “Sale of rebar is quite better now, but we are facing problem with dispatches as there is shortage of labor, which is impacting production too.” South India still remains a dull market, especially Karnataka; sales are nearly 50% lower, as per a trader in Bangalore
Rebar manufacturers based in Hyderabad are selling the material in Bangalore at INR 36,000/MT FOR for 10-32 mm, whereas sellers in Bangalore are offering the same material at INR 36,500/MT( including all taxes).
Market participants are expecting prices to remain under pressure in near future, although rebar prices in Indian market have almost touched a 4-year low at present.
Indian Billet and Rebar prices
|
Region |
City | Billet | W-o-W | Rebar# |
W-o-W |
| Central | Raipur | 25,200 | – 350 | 28,700 | – 200 |
| Raigarh | 25,000 | – 200 | 29,000 | 0 | |
| Eastern | Durgapur | 25,200 | – 700 | 28,200 | – 600 |
| Western | Ahmedabad | 27,000 | – 300 | 29,900 | – 200 |
| Mumbai | 27,400 | -100 | 30,400 | – 100 | |
| Jalna | 27,100 | – 300 | 30,300 | – 300 | |
| Northern | Mandi Gobindgarh | 29,300 | – 350 | 33,900 | – 300 |
| Southern | Hyderabad | 26,300 | – 200 | 29,000 | – 300 |
| Chennai | 26,850 | – 250 | 31,100 | 0 | |
| Bangalore | 27,100* | – 250 | 31,000 | – 400 |
Basic Prices as on 23 May’15, #=12 mm, *Ingot price
Excise duty & CST/VAT extra
Source: SteelMint Research
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