Indian rebar (TMT) prices fall at two years low over weak demand and global slowdown
Indian re-bar prices have come down by almost Rs 1,500-2,000 per tonne in last 2 months on weak demand from construction sector amid seasonal slowdown. Currently, prices are hovering at 2 years low and offers for 12mm, 500 Fe TMT stands at Rs 30,500- 33,500 per tonne (basic prices) across India. India’s largest re-bar producing states Maharastra and Chattisgarh have been hit the most.
India is one of the largest re-bar producer in the world with an annual production capacity of over 35 million tonnes. Indian market is dominated by secondary steel manufacturers who hold over 70 per cent of market share and has an average installed capacity of 100-300 tonnes per day.
Industry experts fell that prices have come down in Indian domestic market primarily due to lack of infrastructural development by Indian government. And another is depreciating Rupee, which indicates lack of investors confidence in Indian market. If situation continues to remain same, prices are expected to fall further. Current prices are seen in July 2011.
“Indian steel market has been hit by global slow down. Though India has been performing well against its peers. Indian market has great potential, as per capital consumption of steel is still less than 60 kgs per person against a world average of 215 kgs. Indian steel production and consumption is expected to show a significant growth.” said Mr C.S. Verma, Chairman, Steel Authority of India (SAIL) at one of the conferences in New Delhi.
Steel Authority of India is the largest steel producing company in India, with an annual production capacity of over 14 million tonnes per annum.