Primary producers, who offered discounts for Sept’15 deliveries, have now rolled over prices for Oct’15.
Primary producers have kept rebar offers unchanged for Oct’15. Earlier in month-end of Sept’15, they offered a discount of upto INR 1,200/MT, which is now an open sales price for Oct’15.
Currently, 12 mm rebar offers are assessed in the range of INR 33,000-34,000/MT (excise duty included and other taxes extra) in projects. However in retail segment, prices are higher by INR 500-1,000/MT for the same grade.
In the last week of Sept’15 (week 39), few primary producers offered discount because of competitive price amongst them. Primary producers like RINL had offered a discount of INR 600-800/MT and SAIL by upto INR 1,200/MT for last week sales.
In the beginning of Sept’15, prices were in the range of INR 34,500-35,000/MT, which at the month-end closed at INR 33,000-34,000/MT (down by INR 1,000-1,200/MT).
Difference between primary and secondary makers squeeze to INR 2,500/MT
Rebar price gap between primary and secondary producers has reduced to a large extent. In month of Sep’15, prices of primary producers were reduced by upto INR 1,200/MT and secondary producer by INR 2,500/MT (considered ex-Delhi price).
For instance, primary producers in Delhi/NCR are offering at INR 33,500-34000/MT for 12 mm in projects. While, secondary producers’ offers are assessed at INR 31,500-32,000/MT (excise duty included and other taxes extra) for the same size. Thus, it can be inferred that price gap between them has narrowed down by 1,500-2,000/MT.
A dealer based in Mumbai, Delhi and Chandigarh shared, “Tata, SAIL and JSW have kept rebar offers unchanged for Oct’15. But, demand is very low. We expect that prices may come down by INR 500-1,000/MT prior to Diwali”.
Primary rebar offers for Oct’15
| Company | Prices in INR/MT | M-o-M Change |
| SAIL | 33,500-34,000 | – 1,200 |
| Tata Steel | 34,000 | – (500-1,000) |
| RINL | 35,000 | – (600-800) |
Prices are excise duty included; VAT/CST extra
Source: SteelMint Research
City-wise prices with M-o-M
|
City-Wise |
Primary Producers Price |
M-o-M
Change |
Secondary Producers Price |
M-o-M Change |
| Mumbai | 33,000-34,000 | – (800-1,200) | 30,500 | – 2,000 |
| Delhi | 33,500-34,500 | – (800-1,200) | 31,600 | – 2,500 |
| Chennai | 34,500-35,500 | – (800-1,200) | 30,000 | – 1,000 |
Prices in INR/MT; excise duty included, VAT/CST extra
Source: SteelMint Research
Note: Above prices are basic, excise duty & other taxes extra
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