Indian rebar manufacturers increased offers up to INR 3,000-4,000/MT during Dec’16. Prices were hiked also in Nov’16 by INR 700-2,000/MT.
Indian rebar manufactures has increased offers nearly 4-7% (INR 3,000-4,000/MT) during Dec’16. Major price hike is seen in West India specifically in Mumbai by INR 4,000/MT followed by Central, East and South India by INR 3,000-3,600/MT in the same duration.
Reason behind Price Surge
1) The major reason behind the increase in rebar prices is due to rise in ingot/billet prices with the combination of expected revival in demand.
2) International rebar prices (considering China) has also surge by 70% since the starting of Jan till Dec’16 end. It indicates that there is enough scope for Indian steel producers to increase prices in line with the global market.
3) In addition, January to March is the peak time for construction activities. So traders/ stockiest started taking position during December on the anticipation of better demand in the upcoming months.
Indian billet and rebar prices as on 3 Jan’16
| Region | City | Billet | M-o-M | 12mm Rebar | M-o-M | Monthly Average rebar prices (Dec’16) | Monthly Average rebar prices (Nov16) | % Change | Monthly Average conversion spread (Dec’16) | Monthly Average conversion spread (Nov’16) | % Change |
| Central | Raipur | 25,300 | +2,700 | 28,200 | +3,000 | 25,800 | 24,900 | +3.60% | 2,700 | 3,000 | -10% |
| Eastern | Durgapur | 25,500 | +3,000 | 28,000 | +3,600 | 25,400 | 23,800 | +6.7% | 2,300 | 2,200 | +4.5% |
| Western | Mumbai | 27,800 | +4,000 | 31,400 | +4,000 | 28,500 | 26,900 | +5.9% |
3,300 | 3,300 | 0.% |
| South | Hyderabad | 24,000 | +4,000 | 30,500 | +3,500 | 28,400 | 27,000 | +5.2% | 3,900 | 3,300 | +18.2% |
Basic prices in INR/MT; excise duty and CST/VAT extra
Source: SteelMint Research
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