A few large rebar producers based in south India are likely to increase their offers by INR 500-1,000/MT in Sept’16.
With the end of monsoon season in India, it is anticipated that demand of construction activities is likely to pick up in the upcoming months. Thus, prices are likely to move northwards direction in Sept’16.
In fact, a few large rebar producers based in south India may increase offers by INR 500-1,000/MT for Sept’16, as per our sources.
Currently, few large producers like SAIL, JSW Steel and RINL are offering 12 mm material in the range of INR 28,400-29,100/MT (including excise of 12.5%, VAT/CST extra) on ex-Chennai basis. While, other rebar mills are offering the same size material at INR 28,000-28,500/MT.
On the similar lines, 12 mm rebar is being offered by large and small producers in the range of INR 29,000-29,500/MT (including excise of 12.5%, VAT/CST extra) in Bangalore.
A large rebar manufacturer in Chennai stated, “Major rebar demand is coming from Kerala region compared to local market presently and we find more lucrative here”.
Freight from Chennai to Kerala via road is around INR 1,800-2,200/MT depending on the location.
Upcoming ports in south India boost steel demand
Few large development projects like Vizhinjam Port in Kerala, whose work is in progress and another proposed Colachel Port in Tamil Nadu recently announced by the union government, are certainly to boost demand of construction material, especially rebar.
Indian billet and rebar prices as on 27 Aug’16
|
Region |
City | Billet | D-o-D | 12 mm Rebar |
D-o-D |
| Central | Raipur | 19,450 | 0 | 22,200 | 0 |
| Eastern | Durgapur | 1,9750 | +150 | 21,400 | 0 |
| Western | Mumbai | 21,900 | +300 | 24,700 | +200 |
| Ahmedabad | 21,000 | +100 | 23,200 | 0 | |
| Northern | Gobindgarh | 22,450 | +50 | 26,700 | 0 |
| Southern | Hyderabad | 21,500 | +50 | 24,300 | +300 |
| Bangalore* | 21,300 | +300 | 26,000 | +100 |
Basic prices in INR/MT, excise duty & other taxes extra
*Ingot price
Source: SteelMint Research
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