Primary Producers Roll Over Rebar Prices for June’15

Rebar price gap between primary and secondary players has narrowed down to INR 2,500-3,000/MT

Primary steel producers have kept rebar prices unchanged for June’15 as of now. But a Mumbai based dealer of a large steel company has reported that few companies are offering discount of INR 500/MT on rebar for the current month.

Currently, 12 mm rebar offers by all primary steel producers are in the range of INR 36,500-37,500/MT (excise duty included, CST/VAT extra).

Price gap between primary and secondary manufacturers is narrowing down, which is a matter of concern for secondary steel makers in India. For instance, primary steel makers are offering 12-32 mm at INR 36,500-37,000/MT (including excise duty; CST/ VAT extra), whereas secondary manufacturers in Mumbai are offering the same size at INR 34,000/MT (including excise duty; CST/VAT extra).

Price gap has come down to INR 2,500-3,000/MT, which used to be INR 4,500-6,000/MT.

Sluggish demand and liquidity issues remain major concerns for manufacturers, prices may correct further if situation persists for next few weeks.

Project Updates of JSW Steel

According to JSW Steel’s press release on 15 May’15, “The implementation of expansion project at Dolvi in Maharashtra from 3.3 MT pa to 5 MT pa is in the process and likely to complete during the the 2nd half of the current fiscal year.”

Also a new bar mill with production capacity of around 1.4 MT pa at Dolvi-Maharashtra is also coming up and likely to be commissioned in the current fiscal year which is going to create surplus rebar capacity in the state.

Indian Billet and Rebar Prices

Basic Prices as on 4 Jun’15, #=12 mm, *Ingot price
Excise duty & CST/VAT extra
Source: SteelMint Research