Primary Rebar Producers Increase Offers by upto INR 2,000/MT

Primary rebar manufacturers have increased offers after a long gap of 18 months.

Almost all primary players in market have increased rebar offers by upto INR 2,000/MT in Jan’16 as compared to Dec’15. In the same duration, secondary producers have also risen offers by INR 3,000-4,000/MT.

Since Jul’14 to till Dec’15, primary producers had been reduced rebar offers by about 35%. Hence in Dec’15, traders and distributors had stocked the material, anticipating that prices had touched the lowest level, which might move upwards in coming month.

Presently, primary producers’ offers for 12-32 mm rebar are in the range of INR 31,000-32,000/MT (excise duty included, VAT/CST extra) in retail segment. However in Dec’15, the same size material was offered at INR 29,000-30,000/MT.

No price gap between primary and secondary producers

Currently, primary manufacturers are offering Fe 500 grade rebar at INR 31,500/MT (excise duty included, VAT/CST extra) for 12-32 mm for Mumbai region. Meanwhile, secondary rebar producers are offering the same grade material at INR 31,000-31,500/MT.

Thus, it can be inferred that price gap between them has become almost negligible, which was earlier in the range of INR 2,000-2,500/MT.

Primary Producers rebar offers for Jan’16

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

Note: Prices are for 12 mm ; excise duty and other taxes extra.