Rising Iron ore prices result in increased Re-bar prices. Furthermore, the giant Steel manufacturers such as JSW Steel, Essar Steel and SAIL have increased their steel prices because of high Iron ore purchase price.
Re-bar prices have increased all over India for the month of February, 2014 by INR 500-1000/MT. Primarily, price rise of INR 1,450/MT and INR 1,000/MT have been noticed in Rourkela and Raipur respectively.
On the other hand, minor price decrease of INR 200/MT has been noticed in Latur, located in Western India, where the TMT 12 mm prices are at INR 36,400/MT. However, South Indian Re-bar market witnessed no changes in prices for the month.
Re-bar manufacturers of India have increased their prices owing to shortage in supply of raw material on high prices. Ingot, used in manufacturing of Re-bar is also sold in high prices because of increased Iron ore prices. Thus, the Re-bar prices are fluctuating according to the supply and price of raw material. In addition the traders are quoting prices on the basis of demand for the finished long Steel in the market.
Re-bar market might stabilize as soon as the raw material prices go down in the country. Sudden Iron ore price hike is being discussed in the Apex court and possibly prices will be reinstated back to normal. It is expected that after the hearing on 24 Feb, 2014 Supreme Court will permit Karnataka to increase the extraction limit from 30 MnT to about 40 MnT, which in turn may improve Iron ore supply in the domestic market.