In mid of this week, rebar prices have started to recover after touching an all time low levels.
In last 1-2 days, Indian rebar prices have started to improve after hitting an all time low. Prices had touched the lowest level in Mumbai at INR 24,600/MT, Hyderabad at INR 24,000/MT, Bangalore at INR 25,900/MT, Raipur at INR 23,300/MT, Durgapur at INR 23,000/MT and Delhi at INR 25,900/MT.
However during a week, prices have touched a new low levels in few Indian markets and declined by INR 500/MT in Hyderabad, INR 800/MT in Bangalore and INR 1,000/MT in Mumbai.
In the month of Oct’15, secondary steel makers had halted their production in major markets amid reducing conversion spread, which in turn led to persistent fall in prices.
Currently in Hyderabad, conversion spread from billet to 12 mm rebar is hovering in the range of INR 2,400-2,500/MT, which were around INR 2,900/MT in Apr’15 on a monthly average basis.
Similarly, conversion spread in overall Indian market has narrowed down to below the standard level of INR 3,000-4,200/MT.
Indian billet and rebar offers as on 5 Nov’15
| Region | City | Billet | D-o-D | W-o-W | 12 mm Rebar | D-o-D | W-o-W |
| Central | Raipur | 20,600 | +250 | +100 | 23,500 | + 200 | – 200 |
| Eastern | Durgapur | 20,600 | + 300 | 0 | 23,100 | – 200 | – 300 |
| Western | Mumbai | 21,600 | 0 | -700 | 24,700 | + 100 | -1,000 |
| Jalna | 21,400 | 0 | -700 | 24,800 | – 150 | – 500 | |
| Northern | Gobindgarh | 23,750 | + 400 | + 50 | 28,300 | – 100 | – 500 |
| Southern | Hyderabad | 21,500 | 0 | – 500 | 24,000 | – 100 | – 500 |
| Bangalore* | 21,600 | – 150 | – 400 | 25,900 | – 300 | – 800 |
Basic prices in INR/MT; excise duty and CST/VAT extra
* Ingot price
Source: SteelMint Research
Note: Conversion spread is analyzed on monthly average basis
Leave a Reply