Secondary Rebar manufacturers based in Gujarat have increased gauge parity for 8, 10, 32 mm sizes.
Gujarat based secondary rebar manufacturers had kept a proposal in a meeting held last week to increase gauge parity for few sizes. They were willing to increase gauge parity for 8 mm by INR 200/MT and 10 & 32 mm by INR 100/MT. However, they have kept parity unchanged for sizes 12,16 and 25 mm. The new parity is effective from 15 Dec’15.
SteelMint also spoke to President of Sihor Re-rolling Mills Association, Mr. Harish Patel, who stated, “Rebar manufacturers based in Gujarat had decided to increase gauge parity on 10 Dec’15, which has implemented from 15 Dec’15 for specific sizes in order to maintain conversion level.”
He also added, there are around 120 rolling mills in Bhavnagar district, Gujarat. Out of the total, only 40-45 mills are currently running and the rest are closed owing to unavailability of scrap from Alang, which is one of the largest ship breaking industry in the world.
Meanwhile, secondary rebar manufacturers based in Ahmedabad have increased offers today by INR 500/MT on account of better demand couple with increase in semi finish prices.
Presently, 12 mm rebar prices in Ahmedabad are in the range of INR 26,000-26,400/MT (excise duty and other taxes extra); raised by INR 1,000/MT in a week’s time.
Gujarat rebar gauge parity (old and new)
|
Old Gauge Parity w.e.f 1 Jan’14 |
New Gauge Parity w.e.f 15 Dec’15) |
| Basic = 20mm | Basic = 20mm |
| 8 mm= Basic + 2,400 | 8 mm= Basic + 2,600 |
| 12, 16, 25 mm = Basic + 400 | 12, 16, 25 mm = Basic + 400 |
| 10, 32mm = Basic + 1,200 | 10, 32mm = Basic + 1,300 |
Gauge parity in INR/MT
Source: SteelMint Research
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