India: Rebar Supply May Ease from Eastern Region to Northern part

The viability to supply re-bars has improved from Durgapur, East India to Punjab, Northern region.

Durgapur, (West Bengal) is the India's third largest finished long steel producing state with annual production of approx 3.0 MnT. In general, the state supply finished products including rebars across north-east regions.

In present circumstances rebar landed cost from Durgapur - East region to Punjab-North India much lower (approx INR 1,500/MT) than the offers provided by local manufactures in Punjab.

For instance, 12mm rebar offers in Durgapur is at INR 27,500-28,000/MT ex-works which landed cost to Punjab at INR 34,500-35,000/MT (Including ED, CST & Freight). Although, local producers in Punjab are offering same size re-bars at INR 36,000-36,500/MT ex-works (Including ED & excluding VA/CST).

The cheaper landed cost has attracted the Northern buyers which will further ease supply of rebar from East to North India and which may support prices in East India, Durgapur by preventing further sharp price correction.