Rebar prices fell by upto INR 600/MT in the secondary market in-line with correction in semi finish prices.
Indian secondary rebar manufacturers were under extreme sales pressure during last week as buying was quite dull in all major Indian markets.
As a result, their conversion spread between ingot/ billet and rebar narrowed down, creating more difficulty to sustain in the market.
A well-known rebar manufacturer based in Gujarat shared, “Our rebar sales has badly affected owing to weak demand from the end-users. Thus, we are bound to cut the production by almost 50-60%.”
He also added that our conversion spread (ingot to rebar) has also reduced from the earlier INR 3,000/MT to mere at INR 2,000/MT from the last one month.
Similar situation prevails in other Indian markets like central & west India.
Market participants are eagerly waiting on the decision of MIP by the government, which is going to expire in early Aug’16.
However, any decision whether continue or not, it will have minimal impact on the long steel market as India imports rebar in a very insignificant quantity.
Indian billet and rebar prices as on 18 Jul’16
|
Region |
City | Billet | W-o-W | 12 mm Rebar |
W-o-W |
| Central | Raipur | 19,600 | -600 | 22,500 | -600 |
| Eastern | Durgapur | 21,800 | -550 | 21,800 | -600 |
| Western | Mumbai | 21,700 | +300 | 24,350 | -300 |
| Ahmedabad | 22,100 | -850 | 23,900 | -600 | |
| Northern | Gobindgarh | 23,100 | -400 | 27,200 | -200 |
| Southern | Hyderabad | 21,500 | -300 | 24,500 | -500 |
| Bangalore* | 21,300 | -200 | 26,400 | -300 |
Basic prices in INR/MT; excise duty and CST/VAT extra
* Ingot price
Source: SteelMint Research
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