Persistent Weak Demand Pull Down Indian Rebar Prices to 3 Months Low

The rigorous price fall has stunted the long steel sales in the country. According to Industry participants, the scenario has become unfavorable with minimal trade activities.

With decline in prices upto INR 1,400/MT (USD 21) W-o-W and INR 4,500/MT(USD 70) M-o-M; the domestic rebar and wire offers fell 3 months low as the similar price range were last reported during Feb'17.

The fresh offer prices for Fe 415/500 (12 mm) rebar in Indian domestic market are as follow - Western Region, Mumbai at INR 30,800/MT (USD 480), Northern Region, Delhi at INR 31,100 (USD 485); Central Region, Raipur INR 28,300-28,500/MT (USD 441-445); Southern Region, Chennai INR 30,600/MT (USD 477) and Eastern Region, Durgapur at INR 27,600-27,800/MT (USD 430-434). Prices are basic (excluding all taxes) & ex-works.

This lull demand have resulted increase in the stock levels and forced manufacturers to halt operations. Recently, few well known manufacturers in Southern and Western part of India have reduced rebar productions by approximately 50%.

While, in Central and Eastern regions even though the demand is lull, the manufacturers still have not cut the production as the conversion from billet to rebar remain quiet positive amid expectations that prices will find stability soon.