Primary Rebar Producers Hold Offers for Feb’16

Almost all the primary rebar manufacturers have kept their offers firm for Feb’16. However, RINL has increased prices for specific sizes.

Most of the primary players in Indian market have maintained their rebar offers for the current month. In the starting of Jan’16, almost all the primary producers had increased their offers by INR 1,000-2,000/MT after a long gap of 18 months.

As per a large dealer based in Chennai, RINL (Vizag Steel) has increased rebar prices by INR 500/MT for Feb’16. But, the company is also offering discount by the same rate, which means no change in prices. Meanwhile, the company has also increased prices for specific size i.e 16 mm by INR 1,000/MT owing to shortage of material in Feb’16.

The dealer added that rebar sales are quite better from last two months, which were dull in the 2nd half of 2015.

Presently, primary producers’ offers for 12-32 mm rebar are in the range of INR 32,000-32,500/MT (excise duty included, VAT/CST extra) in retail segment. While in projects, the material is offered at around INR 31,500/MT in Punjab region.

Price gap between primary and secondary producers

Currently, primary manufacturers are offering rebar at INR 31,000-31,500/MT (excise duty included, VAT/CST extra) for 12-32 mm in retail segment in Mumbai. While, secondary rebar producers are offering the same size material at INR 29,700-30,000/MT.

Thus, it can be inferred that price gap between them is now around INR 1,000/MT, which was nil in the last month. The major reason behind this is primary producers have kept their offers steady, but secondary players have reduced offers by INR 2,000-2,500/MT across India in a month’s time.

Primary producers’ rebar offers for Feb’16

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