BigMint is a Market Intelligence and Price Reporting firm that caters to the data and analytics requirements of businesses in the commodities sector. It publishes real time prices and information, which is impartial, independent and reliable, sourced from all industry interfaces – sellers, buyers, agents and traders. This data is filtered and passed through very stringent, calculative assessments before final prices are derived, thereby giving our clients accurate pricing.

Go to List

Conversion Spread from Billet to Rebar Remain On Positive Note

...

Finish long

BigMint Bureau

637 Reads

12 Jun 2017, 18:56 IST

Conversion Spread from Billet to Rebar Remain On Positive Note

Since, couples of weeks the long steel prices in India are rigorously declining due to two major factors which are falling Ingot/billet prices & persistent weak trends globally.

Notably, the proportion for the fall in the prices for long steel (rebar) is similar to billet and ingot offers. Hence, this fall in the offers has not affected the conversion (margins) of Indian re-rollers and it remained on a positive note.

This is the reason manufacturers are not holding the production as they are able to extract maximum profit margins.

Currently the conversion from billet to 12 mm rebars in various regions can be witnessed at INR 3,600-3,800/MT in Western Region- Mumbai, INR 4,300-4,500/MT in Central Region - Raipur and INR 3,600-3,800/MT in Eastern Region - Durgapur.

According to the Industry participants the average handling cost for the standalone rolling mill is about INR 3,500- 4,000/MT, while for hot rolling mill it required INR 2,500-3,000/MT.

Construction sector has been the most fastly growing sector in India and the demand for the rebars are expected to remain gradually increase in coming times.