India: Primary Rebar Producers rollover Prices for Nov’14

Almost all the primary Rebar producers have rolled over their prices, but there is little expectation of price correction in coming weeks.

Primary Rebar producers are facing price pressure from the market as demand from the end-users is still low. All the primary Rebar manufacturers had already reduced their prices in the last two months by INR 1,500-2,500/MT, but this time they have rolled over the prices.

SAIL’s officials confirmed, we are not reducing Rebar prices as of now, but there is possibility of correction by INR 500/MT in the coming weeks. JSPL officials had declared that the company is likely to hold prices in the current month. Tata Steel officials reported it will declare the Rebar prices in the next 2-3 days. However, sources say it may rollover the prices.

According to Monnet officials, “Currently, we are offering the material at INR 42,500/MT for 12 mm in Mumbai (Excise included, VAT extra) and we are not expecting of price correction.”

NMDC, which is largest Iron ore producer in India, had already declared to reduce Iron ore lump prices by INR 200/MT, but kept fines prices unchanged in the current month.

Secondary Steel Market

Secondary Rebar prices in last month had fallen by INR 700-1,500/MT in major cities. However, in the beginning of this month, market participants believe prices will remain high as construction activities are picking up. Today, Rebar offers in Mumbai have slightly increased by INR 300-400/MT owing to increase in MS Ingot prices. Currently, Rebar in Mumbai is being offered at INR 37,750/MT for 12 mm (Excise Included, VAT extra).

A trader in Ahmadabad urged, “Orders are very limited in the market and currently prices are stable at INR 37,100/MT for 12mm in Ahmedabad (Excise included, VAT Extra).”

Primary Rebar (12 mm) offers for November

Note: Excise included, VAT extra