Rebar prices in the Indian domestic market gain by INR 1,000-2,000/MT (3-7%) during Jan’17, M-o-M. Similar, price trend were reported in Dec’16 when prices rose by INR 3,000-4,000/MT (14-20%).
During the month (Jan’17), major price hike is seen in West India specifically in Mumbai by INR 2,000/MT followed by East, West & Central India by INR 900-1,800/MT.
There were positive trend in the domestic market since beginning of Dec’16 as the large producers have increased the prices for finished steel products by approximately INR 3,000-5,000/MT. Thus, the medium & small scale industries had to follow the same route and raised prices significantly.
In addition, usually there is better demand for rebar from January to March as it is peak trade time for construction activities. Thus, traders & stockiest also doubled their purchases in line to take healthy profit margins.
Analyzing the price movement in global market, the prices fell by USD 15-20/MT to USD 430-435/MT (FOB China) in the 1st half of Jan’17. However, post sharp price reduction the market got stable and carried out the trading in the range of USD 430-440/MT FOB China.
Indian Billet and Rebar Prices with Conversion Spread
| Cities | Monthly Average billet prices | Monthly Average rebar prices | Price Changes in rebar (M-o-M) | Changes in % (M-o-M) |
Conversion Spread | Changes in % | |||
| Dec’16 | Jan’17 | Dec’16 | Jan’17 | Dec’16 | Jan’17 | ||||
| Durgapur | 23,100 | 24,600 | 25,400 | 27,200 | +1,800 | 7.10% | 2,300 | 2,600 | 13.00% |
| Mumbai | 25,200 | 26,700 | 28,500 | 30,500 | +2,000 | 7.00% | 3,300 | 3,800 | 15.20% |
| Hyderabad | 24,500 | 25,800 | 28,400 | 29,300 | +900 | 3.20% | 3,900 | 3,550 | -9.00% |
| Raipur | 23,100 | 24,600 | 25,800 | 27,500 | +1,700 | 6.60% | 2,700 | 2,900 | 7.40% |
Basic prices in INR/MT; excise duty and CST/VAT extra
Source: SteelMint Research
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