Central India: Chhattisgarh Re-rollers Increase Rebar Gauge Parity by INR 500/MT

Chhattisgarh - Raipur & Raigarh based secondary rebar manufacturers have increased gauge parity by INR 500/MT w.e.f. 17th Feb'20 in order to improve their margins (conversion spread).

SteelMint learned the new gauge parity for 10 to 25mm rebars will be INR 3,000/MT which was at INR 2,500/MT earlier.

Further for 8 and 32mm rebars, gauge parity stands at INR 4,000/MT which was earlier at INR 3,500/MT.

With this increase gauge parity by INR 500/MT, the fresh conversion spread from Billet to 12-25mm rebars in Raipur is hovering at INR 4,000/MT which was about INR 3,500/MT in old parity.

In a recent time i:e; 26th Dec'19, west region based re-rollers in Jalna and Goa have also increased their rebar guage parity by INR 200/MT to INR 2,500/MT for 10 to 25 mm, 8 mm & 32 mm will be INR 3,500/MT against INR 2,300/MT and INR 3,300/MT respectively.

In addition, gauge parity moved up in south region Hyderabad market i.e. INR 200/MT to INR 2,700/MT from 10-25 mm & INR 3,700/MT for 8 mm along with increase in loading charges by INR 50/MT to INR 200/MT.

Mumbai (Wada) based re-rollers also have increased their rebar guage parity on 19th Oct'19 by INR 300/MT for 10 & 12 mm and currently hovering at INR 3,500/MT against INR 3,200/MT.

Further, central region, Raipur based structure manufacturers have change the gauge parity in light sizes on 3rd Jan'20 and raised by INR 500-800/MT from 25 angle to 75 angle along with 75/40 and 100/50 channel and heavy structure remain unchanged.

Participants believe that, the manufacturers in other markets may follow suit to improve their margins on seasonal advantage.