Shortage of imported scrap push rebar offers up by up to INR 1,000/MT W-O-W in West India.
Facing low demand from the end-user construction sector, rebar manufacturers are struggling to keep offers upwards and prices are more or less unchanged in the last one week except in West India.
In Mumbai, rebar offers went up by INR 1,000/MT W-o-W on account of shortage of imported scrap, coupled with slight buying improvement in Maharashtra. Currently, the difference in rebar price between Raipur and Mumbai is hovering in the range of INR 2,000-2,500/MT, which was not so big in June.
Therefore, owing to better viability, demand for rebar from Raipur is likely to improve across Maharashtra. Rebar offers are likely to remain firm in Mumbai and Jalna until scrap shortage persists.
Other markets like East, North and South saw a slight decline by INR 200-400/MT W-o-W owing to slight correction in semi-finished and continued weak demand.
Joint Venture between SAIL and Prime Gold to set up rebar unit
Steel giant SAIL and Prime Gold based in North, have decided to set up a rebar (TMT) unit at Bilowa in Gwailor district (MP) in a joint venture. Prime Gold will hold a majority stake of 74% and remaining 26% will be held by SAIL. The new unit will produce 1 lakh MT of rebar (TMT) and 60,000 MT of billet will be supplied from SAIL plants anually to this unit.
This unit will cater to MP, UP, Rajasthan, Delhi, Haryana and it will provide high quality steel at reasonble prices. SAIL will market the rebar (TMT) produced from this unit by its own marketing network.
Indian Billet and Rebar prices
|
Region |
City | Billet | W-o-W | Rebar# |
W-o-W |
| Central | Raipur | 22,650 | – 50 | 25,600 | – 300 |
| Eastern | Durgapur | 22,100 | + 50 | 24,600 | – 100 |
| Western | Mumbai | 25,200 | + 1,000 | 28,300 | +1,000 |
| Jalna | 24,900 | + 500 | 27,000 | 0 | |
| Northern | Gobindgarh (MGG) | 25,750 | – 250 | 30,400 | – 200 |
| Southern | Hyderabad | 23,500 | – 500 | 26,100 | – 400 |
| Bangalore* | 24,150 | 0 | 28,400 | 0 |
Basic Prices as on 18 Aug’15, #=12 mm, *Ingot price
Excise duty, CST/VAT extra
Source: SteelMint Research
Note: above price are ex-plant, excise duty & other taxes extra.
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