Secondary rebar manufacturers have increased their offers during Feb’16 by upto INR 2,500/MT. Whereas in Jan’16, they reduced prices by upto INR 4,500/MT.
Indian steel producers are quite happy with the government’s decision on the MIP imposition on various steel products. Secondary rebar producers had increased offers initially in the first 10 days of Feb’16 by around INR 3,000/MT in major markets like Raipur, Hyderabad, Durgapur and Mumbai.
But due to weak demand, rebar prices in the market fell by INR 1,000-1,500/MT during the middle of the month.
On the other side, rebar manufacturers were also facing fall in conversion spread by 7-14% from billet to 12 mm rebar in Feb’15. This indicates demand was not supportive.
Industry leaders also believe that government’s announcement of INR 221,000 crore investment in infrastructure sector, including INR 97,000 crore allocation in road & highways project in the union budget FY17, is likely to increase consumption of steel and cement in 2016.
Indian billet and rebar prices as on 2 Mar’16
| City | Billet | M-o-M | 12mm Rebar | M-o-M | Monthly Average rebar prices (Feb’16) | Monthly Average rebar prices (Jan’16) | % Change | Monthly Average conversion spread (Feb’16) | Monthly Average conversion spread (Jan’16) | % Change |
| Raipur | 22,500 | +1,400 | 25,300 | +100 | 25,300 | 25,100 | +1% | 3,400 | 3,900 | -13% |
| Durgapur | 22,000 | +1,000 | 24,900 | +900 | 24,500 | 24,600 | 0% | 3,000 | 3,500 | -14% |
| Mumbai | 24,000 | +1,000 | 27,200 | +800 | 27,300 | 26,600 | +3% | 3,400 | 3,700 | -8% |
| Hyderabad | 24,000 | +1,500 | 26,700 | +1,500 | 26,000 | 25,300 | +3% | 2,500 | 2,700 | -7% |
Basic prices in INR/MT; excise duty and CST/VAT extra
* Ingot price
Source: SteelMint Research
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