Indian Rebar Prices Increased Up to INR 3,100/MT in Mar’17

Domestic rebar prices have registered a sharp hike in the prices from INR 1,800-3,100/MT (USD 25-45) in Mar’17, M-o-M.

During the month major price hike is seen in Raipur by INR 3,100/MT followed by Hyderabad at INR 2,950/MT, Durgapur at INR 2,900/MT & Mumbai INR 1,800/MT.

Supported by a strong demand amid short supply and increase in Ingot/Billet prices influenced the sharp hike in the rebar prices.

The manufacturers across the country stated that, there was no major inventory available with them and demand was favorable.

Also, the market participants stated that the rise in demand is because of various government projects and tenders, for construction and infrastructure which need to started at the soonest otherwise these projects might go on hold until next year.

Highlights

1. In Mar’17, the manufacturers were able to extract maximum profit as the conversion from Billet to 12mm Rebar increase is about INR 1,200/MT in Central & East India and INR 100-200/MT in West & Southern regions. Conversion spread considering on monthly average basis.

2. As stated by the manufacturers in Central, East & South India, the plants  were operational on full capacity levels in Mar’17.

3. During the month the prices also reached to 2 year high as the same were last reported during Apr’15.

4. The Hot rolling mill operators have reduced billet sells in open market as they largely produce rebar to fulfill the supply as demand was quite good during the whole month.

5. The manufacturers in Durgapur, East India have revised gauge parity and increased the prices for 8 mm by INR 200/MT & for 12 mm by INR 300/MT. The manufacturers in Raipur, Central & Mumbai, Maharashtra also in race to increase their gauge parity.

Average Prices & Conversion Spread (Feb-Mar’17)

Basic (Ex- Works) prices in INR/MT, excise duty & other taxes extra
Source: SteelMint Research