Rebar manufacturers decreased their offers during July’16 by INR 400-1,000/MT, following fall in June’16 by INR 600-2,000/MT.
Rebar prices during July’16 slipped majorly in south India by INR 1,000/MT, followed by central and west India by INR 700-800/MT and east India by INR 500/MT.
Large long steel producers like SAIL, RINL and JSW also reduced offers by INR 1,500-2,000/MT during Jul’16.
Traders/ stockist preferred to stay away from the market as demand was quite sluggish across India during July’16 and not to stock the material till the government decision comes for the extension of MIP.
As demand is slowing down, rebar manufacturers are compelled to reduce their production, majorly in central & west India to reduce excess inventory level.
Currently, rebar prices in Indian major markets fell below the MIP level.
Indian billet and rebar prices as on 01 Aug’16
| Region | City | Billet | M-o-M | 12mm Rebar | M-o-M | Monthly Average rebar prices (July’16) | Monthly Average rebar prices (June16) | % Change | Monthly Average conversion spread (July’16) | Monthly Average conversion spread (June’16) | % Change |
| Central | Raipur | 19,900 | -700 | 22,700 | -1,100 | 22,700 | 24,000 | -5.40% | 2,800 | 3,100 | -9.70% |
| Eastern | Durgapur | 19,550 | -450 | 21,500 | -800 | 21,900 | 23,200 | -5.60% | 2,100 | 2,600 | -19.20% |
| Western | Mumbai | 21,200 | -800 | 25,100 | -600 | 24,500 | 25,700 | -5.00% | 3,000 | 3,100 | -3.20% |
| South | Hyderabad | 21,000 | -1,000 | 24,000 | -800 | 24,500 | 25,200 | -2.80% | 3,000 | 2,900 | +3.40% |
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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