Domestic rebar prices continuously on increasing mode from the starting of current week. On D-o-D, offers surge again by INR 200-500/MT and since beginning of week by INR 400-1,000/MT across regions.
Market participants stated that the demand in the East, Central and North India is gradually increasing after the season of Election. They also said that, as the prices of raw material is increasing which is playing a key role in further strengthening the rebar prices.
Today, the offer prices for 12 mm rebar are assessed – at INR 27,900/MT (+300) ex-Raipur, INR 26,800/MT (+100) ex-Durgapur, INR 31,150/MT (+250) ex-Gobindgarh, INR 30,000/MT (+100) ex-Mumbai, INR 27,900/MT (+100) ex-Ahmedabad, INR 28,500/MT ex-Hyderabad & INR 28,000/MT (+400) ex-Chennai. Price changes are on d-o-d (against last day trade) basis.
Raipur, Central India: GK TMT has opened prices with hike of INR 400/MT to INR 27,900/MT for 28 mm material (ex-plant). An official from the company has mentioned “no need to push sale as deals are easily taking place on quoted prices. He further added stock levels are limited currently which was highly mounted during the end of 2016.”
Jalna, Western India: Kalika TMT has again up the prices by INR 200/MT to INR 27,600/MT ex-plant & 28 mm material. The Head of sales added “demand is healthy, expecting prices will remain strong analyzing to end user segment purchase, there is no stock available with the manufacturers as well as traders and there is positive sentiments across the globe.”
Conversion Spread
Further, with the increase in billet prices, conversion spread (margin) in rebar from billet is quite firm from the last 3-4 months in the Central region i.e. in Raipur at INR 2,700-3,000/MT. While, in Western India it sharply gain by INR 700/MT to INR 3,700/MT from earlier (Nov’16) at INR 3,000-3,100/MT. The conversion spread has been taken on the monthly average prices basis.
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