Primary Rebar Producers Decline Offers by INR 1,000-1,500/MT M-o-M

Increase in production and weak buying have pressurized primary rebar producers to decline their offers.

Primary rebar producers have reduced their offers by INR 1,000-1,500/MT in Nov’15 compared to last month. In Oct’15, RINL had declined rebar offers by INR 2,000/MT and others by INR 500-1,500/MT in the next half of last month.

Currently, 12 mm rebar offers are assessed in the range of INR 32,000-32,500/MT (excise duty included and other taxes extra) in projects. However in the 1st week of Oct’15, prices were assessed at INR 33,500/MT for the same grade.

There is price competition among primary producers owing to increase in production. However, demand is not pacing with respect to supply. It seem that selling pressure is likely to continue in the current month owing to weak buying.

Price gap between primary and secondary makers

Rebar price gap between primary and secondary producers has reduced to a large extent. In month of Oct’15, primary producers’ prices were reduced by upto INR 2,000/MT and secondary producers’ by INR 1,000-2,500/MT across India.

For an instance, primary producers in Delhi/NCR are offering 12 mm rebar at INR 32,000-32,500/MT in projects. While, secondary producers’ offers are assessed at INR 29,500-30,500/MT (excise duty included and other taxes extra) for the same size. It means, price gap between them has narrowed down by INR 1,500-2,000/MT.

A dealer based in Chennai shared, “SAIL and RINL have declined rebar offers by upto INR 1,000/MT for Nov’15. Sales of rebar were worst in Oct’15 compared to Sept’15.”

Primary rebar offers for Nov’15

Prices are including excise; VAT/CST extra
Source: SteelMint Research