Rebar manufacturers decreased their offers during Aug’16 by INR 1,000/MT, following fall in July’16 by INR 400-1,000/MT.
Rebar prices slipped mostly in south and West India by INR 1,000/MT, followed by central and west India by INR 500-800/MT and east India by INR 800/MT on M-o-M basis.
Traders/ stockist preferred to stay away from the market as demand was quite sluggish across India during Aug’16.
However, end of monsoon season and positive sentiment can revive the demand in the domestic market in the days to come.
Additionally, conversion gap between billet and rebar is not improving, which is an important factor for rebar manufactures. During Aug’16, conversion gap between billet and rebar remained under pressure.
Indian billet and rebar prices as on 1 Sep’16
| Region | City | Billet | M-o-M | 12mm Rebar | M-o-M | Monthly Average rebar prices (Aug16) | Monthly Average rebar prices (July’16) | % Change | Monthly Average conversion spread (Aug16) | Monthly Average conversion spread (July’16) | % Change |
| Central | Raipur | 20,600 | -500 | 23,200 | -500 | 22,500 | 22,700 | -0.90% | 2,700 | 2,800 | -3.60% |
| Eastern | Durgapur | 20,450 | -600 | 22,700 | -800 | 21,700 | 21,900 | -0.90% | 2,000 | 2,100 | -4.80% |
| Western | Mumbai | 22,600 | -1,000 | 25,500 | -1,000 | 24,400 | 24,500 | -0.40% | 3,000 | 3,000 | 0.00% |
| South | Hyderabad | 22,100 | -1,000 | 25,000 | -1,000 | 24,100 | 24,500 | -1.60% | 2,900 | 3,000 | -3.30% |
Basic prices in INR/MT; excise duty and CST/VAT extra
Source: SteelMint Research
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