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Indian Rebar Offers Remain Under Pressure Despite Low Production

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BigMint Bureau
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23 Aug 2017, 13:59 IST
Indian Rebar Offers Remain Under Pressure Despite Low Production

Place   12MM   8MM   10MM   16MM   20MM   25MM   28MM   32MM 
 Ahmedabad 30,500 32,700 31,400 30,500 30,100 30,500 30,500 31,400
 Bangalore 33,900 34,300 33,900 33,900 34,100 34,100 33,900 35,300
 Chennai 33,000 34,500 33,000 33,000 33,000 33,000 33,000 34,000
 Delhi/NCR 33,900 34,700 34,200 33,900 33,900 33,900 27,700 34,200
 Durgapur 29,600 31,200 30,300 28,800 30,100 30,100 30,600 30,600
 Goa 32,300 33,300 32,300 32,300 32,300 32,300 30,500 33,300
 Hyderabad 31,800 32,800 31,800 31,800 31,800 31,800 29,800 32,800
 Indore 32,200 33,200 32,200 32,200 32,200 32,200 30,800 33,200
 Jalna 30,400 31,400 30,400 30,400 30,400 30,400 28,400 31,400
 Mandi Gobindgarh 34,100 35,700 35,100 34,800 34,800 35,100 35,500 35,700
 Mumbai 31,900 32,300 31,900 31,700 31,700 31,700 31,700 31,700
 Raigarh 29,500 30,300 29,500 29,500 29,500 29,500 27,300 30,300
 Raipur 29,600 30,400 29,600 29,600 29,600 29,600 27,400 30,400

Basic Ex-Works Price. Loading and GST Extra
Grade- Fe 415/500
Source: SteelMint Research

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Even though rebar production by Indian Medium & Small producers is low, the domestic rebar offers have reeled under pressure.

The producers in Central & West part of India reported that of running the mills in low production capacity by almost 30-50%, however they are reluctant to cut prices as demand continue to remain stagnant because of heavy rains in major parts of the country which has slowed down the project works.

As per SteelMint price assessment, in last couple of days the rebar producers all over India have reduced the prices near INR 300-600/MT (USD 5-10). At this moment the sharp fall in rebar offers was seen in the Central, West & South regions (Raipur, Mumbai & Hyderabad) by INR 600/MT followed by the East & Northern India - (Durgapur & Delhi) by INR 300-400/MT.

The current offers for 12 MM rebar are reported at INR 29,500-29,700/MT ex-Raipur & Durgapur, INR 31,800-32,000/MT ex-Hyderabad, INR 33,000/MT ex-Chennai, INR 31,800-32,000/MT ex-Mumbai & INR 33,800-34,000/MT in NCR & Punjab. The all prices are ex-works & excluding of GST at 18%.

Big plants in South & West India selling Billet rather than Rebar

Few of the renowned producers in Chennai (South India) & in Gujarat (West India), the SteelMint sources, that run Hot rolling mills (HRM) say, “they are taking advantage to sell billet in global market rather than to produce rebar amid high inventories and low trade price, we have sufficient global bookings for current month,” they mentioned.

It should be noted that, Indian semis products, including billet are in demand in global market due to higher offers by other major exporters like China & CIS nations. SteelMint's current week billet export price assessment is reported at USD 500-505/MT against last week at USD 490-500/MT, FoB India.

Indian Steel Ministries data also showed that domestic Bar and rod production by Medium/small & large producers have declined by 7% M-o-M in Jun’17 to 2.90 MnT against 3.11 MnT in May’17. The production figures are expected to remain down for July 2017 also.

Reference prices for 12MM Rebars

Place   12MM   8MM   10MM   16MM   20MM   25MM   28MM   32MM 
 Ahmedabad 30,500 32,700 31,400 30,500 30,100 30,500 30,500 31,400
 Bangalore 33,900 34,300 33,900 33,900 34,100 34,100 33,900 35,300
 Chennai 33,000 34,500 33,000 33,000 33,000 33,000 33,000 34,000
 Delhi/NCR 33,900 34,700 34,200 33,900 33,900 33,900 27,700 34,200
 Durgapur 29,600 31,200 30,300 28,800 30,100 30,100 30,600 30,600
 Goa 32,300 33,300 32,300 32,300 32,300 32,300 30,500 33,300
 Hyderabad 31,800 32,800 31,800 31,800 31,800 31,800 29,800 32,800
 Indore 32,200 33,200 32,200 32,200 32,200 32,200 30,800 33,200
 Jalna 30,400 31,400 30,400 30,400 30,400 30,400 28,400 31,400
 Mandi Gobindgarh 34,100 35,700 35,100 34,800 34,800 35,100 35,500 35,700
 Mumbai 31,900 32,300 31,900 31,700 31,700 31,700 31,700 31,700
 Raigarh 29,500 30,300 29,500 29,500 29,500 29,500 27,300 30,300
 Raipur 29,600 30,400 29,600 29,600 29,600 29,600 27,400 30,400

Basic Ex-Works Price. Loading and GST Extra
Grade- Fe 415/500
Source: SteelMint Research

23 Aug 2017, 13:59 IST

 

 

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