Sluggish demand and weakening of Ingot prices in major market led to a fall in Rebar prices by around INR 1,200/MT W-o-W post Holi. Price gap narrow between Primary & Secondary Rebar maker.
Trade activity remains slow in major secondary Rebar market post Holi as prices fall by INR 300-1,200/MT W-o-W. Last week few primary manufacturers like RINL and SAIL reduced their Rebar prices by INR 500-700/MT for Mar’15 and others are offering discounts of about INR 1,000/MT to meet their sales target for FY15.
Primary Vs Secondary Producer Prices narrow down
Currently, 12 mm Rebar offers by Primary producers in Mumbai region are at INR 35,100 (excise duty, VAT extra) whereas offers by Secondary producers are at INR 32,000 in the same region. This difference of INR 3,000/MT earlier stood in the range of INR 3,500-4,500/MT.
Southern Region
Weak demand from end-users, coupled with the fall in Ingot/ Billet prices has led to the fall in Rebar prices in Hyderbad market by INR 1,200/MT W-o-W. After RINL’s cut in Pig iron by INR 1,000/MT last week, Secondary Ingot and Billet manufacturers in Hyderabad region had reduced their offer by INR 1,000/MT in a day.
Karnataka region is a major consumer of Rebar but construction activity remains to be at a standstill owing to abnormal price hike of sand by around INR 1 lakh/truck.
As per a Rebar trader in Bangalore, “Currently, poor demand of Rebar is impacting sales by more than 50% in Karnataka region. Presently, Hyderabad is offering at around 38,000/MT for 12 mm FOR in Bangalore. However, the same material in Bangalore is being offered at INR 39,300/MT inclusive of all taxes, which is almost INR 1,000-1,200/MT dearer than Hyderabad.”
Western Region
Low buying of finished steel products and weakening of Billet prices by INR 800/MT in the last one week led to softening of Rebar prices by INR 700/MT.
Imported scrap offer remained unchanged as rupee hit 2 month low of 62.78 against US dollar. However the rupee is strengthening against other currencies, according to experts.
Weekly change in Billet and 12mm Rebar prices
| Region | City | Billet Price | W-o-W | Rebar Price | W-o-W |
| Central | Raipur | 27,150 | – 500 | 30,300 | – 500 |
| Eastern | Durgapur | 28,100 | + 100 | 30,900 | + 100 |
| Western | Ahmedabad | 28,300 | – 300 | 32,100 | – 300 |
| Mumbai | 28,500 | – 800 | 31,700 | – 700 | |
| Northern | Mandi Gobindgarh | 31,100 | – 150 | 35,400 | 0 |
| Southern | Hyderabad | 28,100 | – 900 | 30,800 | -1,200 |
| Chennai | 28,400 | -600 | 32,400 | -200 |
Basic Prices as on 12 Mar’15, Excise duty and VAT extra
Source: SteelMint Research
Leave a Reply