Indian rebar manufacturers decrease offers by INR 1,000/MT during Oct’16. However, prices rose significantly by INR 2,000/MT during Sep’16.
Indian rebar prices has decreased in the range of INR 600-1,000/MT during Oct’16. Major price fall seen in South India by about INR 1,000/MT, followed by West, East and Central India by INR 800/MT. However, prices rose by about INR 2,000/MT during Sep’16.
The prime reason behind the fall in finished steel prices in Oct’16 because of the demand remains to be weak and excess production of rebar during the same period.
It is anticipated that long steel prices is likely to remain firm during Nov’16 owing to rise in raw material prices. The only concern for the manufacturers is need for supportive demand which will keep long steel prices on higher side.
Indian billet and rebar prices as on 4 Nov’16
| Region | City | Billet | M-o-M | 12mm Rebar | M-o-M | Monthly Average rebar prices (Oct’16) | Monthly Average rebar prices (Sep16) | % Change | Monthly Average conversion spread (Oct’16) | Monthly Average conversion spread (Sep’16) | % Change |
| Central | Raipur | 22,250 | -750 | 24,600 | -600 | 24,200 | 23,900 | +1.3% | 2,600 | 2,500 | +4% |
| Eastern | Durgapur | 22,000 | -200 | 24,200 | -600 | 23,900 | 23,300 | +2.6% | 2,000 | 2,200 | -9.1% |
| Western | Mumbai | 23,000 | -800 | 26,000 | -800 | 26,000 | 26,300 | -1.1% | 3,100 | 2,900 | +6.9% |
| South | Hyderabad | 24,000 | -1,000 | 25,800 | -1,000 | 25,500 | 25,900 | -1.5% | 2,900 | 2,800 | +3.6% |
Basic prices in INR/MT; excise duty and CST/VAT extra
Source: SteelMint Research
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