Secondary rebar manufacturers decreased their offers during Jun’16 by upto INR 1,700/MT, following price corrections of upto INR 2,000/MT in May’16.
Indian rebar prices in secondary market had fallen continuously during Jun’16. The major fall of INR 1,300-1,700/MT was seen in east and west India in the duration.
The prime factor of fall in rebar prices was price corrections in semi finish steel prices couple with weak demand amid onset of monsoon.
In addition, primary rebar producers had also cut their offers by INR 1,500-2,000/MT twice during June, which had also affected the secondary market.
However, demand seems to be above average in central India like Raipur. Despite of that a minor price correction of INR 500/MT was seen in the region during Jun’16.
A large rebar manufacturer based in Hyderabad said, “In general, sales of construction material is mostly affected in the ongoing season of monsoon and also low trade prevails during Ramdan festival for almost 1-month till first week of Jul’16. However, market is expected to pick up after this.”
In the similar line, conversion gap between billet and rebar has reduced in Mumbai by about 9% in Jun’16 against May’16 on a monthly average basis.
Indian billet and rebar prices as on 1 Jul’16
| Region | City | Billet | M-o-M | 12mm Rebar | M-o-M | Monthly Average rebar prices (June’16) | Monthly Average rebar prices (May16) | % Change | Monthly Average conversion spread (June’16) | Monthly Average conversion spread (May’16) | % Change |
| Central | Raipur | 20,550 | -700 | 23,500 | -500 | 24,000 | 24,600 | -2.4% | 3,100 | 3,000 | +3.3% |
| Eastern | Durgapur | 20,100 | -1,300 | 22,300 | -1,700 | 23,200 | 24,400 | -4.9% | 2,600 | 2,600 | 0% |
| Western | Mumbai | 22,000 | -1,100 | 25,000 | -1,300 | 25,700 | 26,700 | -4% | 3,100 | 3,400 | -8.8% |
| South | Hyderabad | 22,000 | -150 | 24,800 | -200 | 25,200 | 25,700 | -1.9% | 2,900 | 2,800 | +3.6% |
Basic prices in INR/MT; excise duty and CST/VAT extra
Source: SteelMint Research
Note: Prices are basic, excise duty & other taxes extra
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