India: SAIL corrects Re-bar Prices by INR 500/MT; Others hold on

Primary Re-bar producers like JSW, Tata, RINL and Monnet Ispat hold on the prices except SAIL, which reduces it by INR 500/MT.

According to one of traders at Chennai, SAIL’s Re-bar prices are currently at INR 48,500/MT for 10 & 12 mm. This means it corrects the offers by INR 250/MT from the last month.

Coal Cost Increased: As SAIL imports almost 75% of cooking coal annually, the imposition of 2.5% duty on import of cooking coal led to raise the company’s production cost.However, the company doesn’t pass the cost to end-users.

Officials of Monnet Ispat said, “We did not increase the Re-bar prices because of weak demand. We are offering it at INR 37,500/MT (Ex-Raigarh; ED & VAT extra) for 12-32 mm.  Currently, our Re-bar units are running at around 80% capacity (0.5 MnT pa).”

Secondary Re-bar Prices down by INR 2,000/MT on Rising Import Secondary Re-bar prices have fallen by almost INR 2,000/MT especially in Central & Western regions in the last month owing to sluggish demand, low construction activity and rising import. Re-bar units are running at below capacity level in most of the markets. In Northern regions (Scrap based market), prices have also fallen by almost INR 1,000/MT in the last 1-week owing to cheaper raw material prices.

Primary Re-bar Offers as on 06 Aug, 2014