Rebar prices have picked up in India on possibility of further extension of MIP (Minimum Import Price) on steel products.
Rebar prices in Indian market have moved up gradually on anticipation that government may further extend MIP on steel products by 6 months. It is to be noted that the government had fixed a minimum import price in the month of February, 2016 for a period of 6 months, expiring on 4 Aug’16.
Traders/ stockist have been halted stocking of material since last couple of weeks due to the dilemma that whether MIP will continue or not. However, market participants are active on the possibility of continuation of MIP.
Rebar prices have gone up by INR 200-400/MT in Raipur, Chhattisgarh. Current offers are assessed at INR 22,500-23,500/MT (ex-works) for 12 mm. Prices in other parts of the country have also increased by INR 100-200/MT.
Participants believe that market is fundamentally weak and prices may not sustain for long term. They blame that increased production by larger manufacturers like JSW Steel, JSPL,Tata Steel and RINL has put pressure on prices.
“Our steel demand is growing at 5-6%. Whereas, supply is growing at the rate of 8-10%. There is limited scope of prices to go up. Also, MIP will have limited impact on long steel, as imports are marginal”, said a manufacturer based in eastern India.
Indian billet and rebar prices as on 27 Jul’16
|
Region |
City | Billet | D-o-D | 12 mm Rebar |
D-o-D |
| Central | Raipur | 19,750 | +150 | 22,500 | +300 |
| Eastern | Durgapur | 19,400 | +50 | 21,300 | 0 |
| Western | Mumbai | 21,150 | +150 | 24,300 | -100 |
| Ahmedabad | 21,900 | +200 | 23,700 | +200 | |
| Northern | Gobindgarh | 22,700 | 0 | 26,800 | +100 |
| Southern | Hyderabad | 21,100 | +100 | 24,100 | +100 |
| Bangalore* | 21,100 | 0 | 26,300 | 0 |
Prices in INR/MT
Source: SteelMint Research
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