Limited Trade Activities in Rebar Market

Rebar offers continues to increase in secondary market; major rise of upto INR 800/MT is seen in west India within a day.

Indian secondary rebar manufacturers have continued to raise offers since the starting of the current week owing to increase in semi finish prices. However, demand was neither very strong nor too weak in the duration.

In last one day, rebar manufacturers have raised offers in most of the markets by INR 300-800/MT. Major increase in offers is seen in west market by INR 400-800/MT, south by INR 500/MT and east & north by INR 300-400/MT.

There was also a strong rumour in last few days that the government was also considering to impose Minimum Import Price (MIP) on scrap, which majorly lifted the secondary market upwards. But, no announcement has been heard so far from the government’s side.

On the flip side, traders/stockist are hesitating to place orders at higher rates and want to liquidate earlier stock first. Most of the traders in Raipur are offering rebar at around INR 25,500-25,600/MT (basic price) for 12 mm. While, major manufacturers are offering at INR 25,800-26,000/MT for the same grade material.

It is also heard from the sources that there is also some disturbance in the M.P border from last couple of days. Thus, producers are finding difficulties for supplying material from Raipur to MP; led to low trade activities from Chhattisgarh.

Indian billet and rebar prices as on 20 Feb’16

Basic prices in INR/MT; excise duty and CST/VAT extra
* Ingot price
Source: SteelMint Research