Central India
In Raipur, sales of Re-bar have improved from past 3-5 days; however shortage of MS Ingot & Re-bar is supporting the prices. Prices of Re-bar & Ingot gain slightly by INR 100-200/MT in 2-4 days. Pressure on Sponge & Pig iron prices increase further as Odisha is supplying material to Raipur at cheaper prices by INR 300-500/MT (Pig iron at INR 26,500/MT FOR) compared with local offers in Raipur of INR 27,000/MT.
“In past few days power cut had declined the production; inventory level is also low. If any manufacturer receives an order in bulk quantity, there is less possibility to fulfill the order as manufacturers don’t have inventory owing to power cut & labor crisis,” shared a Re-bar supplier based in Raipur.
Eastern India
Eastern region based manufacturers are totally dependent on Mandi Gobindgarh (Punjab) market to sell the material. In Durgapur from past 3-4 days, prices of Sponge, Ingot & Re-bar have increased by INR 1,000-1,200/MT owing to Ingot price hike of INR 700/MT in Mandi. It is also heard that exports of Billet from Durgapur to Nepal also support the Billet prices.
In Rourkela, demand from local market is stagnant. But, buyers from Raipur, Raigarh & Mandi are supporting Sponge & Billet prices. Rourkela is selling Sponge iron (Fem 80) at INR 21,500/MT delivered Raipur. However, Sponge manufacturers of Raipur are offering the same material at INR 21,700-21,800/MT Ex-Raipur basis.
Conversion Graph of Raipur Market (Apr-Jun, 2014)
Northern India
SteelMint assessed that prices of Mandi Gobindgarh is highly volatile, which makes steel makers cautious across India. In view of sentiments, Punjab is one of the major markets in India. In Mandi, prices of Ingot are fluctuating by INR 100-300/MT per day. In last week, Ingot prices in Mandi are at INR 34,500/MT, now it is traded at INR 35,300/MT. It is also heard that sellers are limited at this prices. Most of the manufacturers are totally dependent on Mandi Gobindgarh to buy & sell the material.
Western India
Maharashtra is one of the major consumer states for finish Long products. MS Ingot prices in Mumbai are stable at INR 32,500-33,000/MT and also there is lesser possibility of high fluctuation.
South India
South India is one of the split markets among all markets of India. Steelmakers of this region don’t want to watch sentiments of any other market. Iron & Steel producers of South India are struggling with Telangana issue, which is creating problem of taxation & transportation. As a result, sales volume of Re-bar to nearby states is declining that reduced the prices of Re-bar & Ingot by INR 800-2,500/MT.
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