Steel giants like SAIL and RINL have increased rebar offers by INR 500/MT.
Indian primary long steel producers have been sharply increased their offers since the day MIP was imposed on various steel products i.e on 5 Feb’16.
Recently, Steel Authority of India Limited (SAIL) and RINL (Vizag steel) have increased rebar offers by INR 500/MT on 11 Mar’16 and 12 Mar’16 respectively. In the starting of the current month, RINL has increased prices for both rebar and wire rod by INR 1,000/MT.
All leading steel producers like RINL, SAIL and Tata Steel have increased rebar and wire rod offers by INR 3,000-4,500/MT after MIP was imposed.
It seems that rebar demand is quite supportive in the primary market as compared to secondary one, especially post MIP. Possibly, their end-users or targeted customers are mainly government projects.
Therefore, primary producers have not rollbacked prices post MIP. However, secondary rebar producers have increased offers initially but partially reduced afterwards as market did not absorbed completely.
As per a large dealer based in Chennai, “Presently, SAIL is offering for 10-32 mm rebar at around INR 35,000/MT (excise duty included, VAT/CST extra) in retail segment in Chennai. However, RINL (Vizag steel) is offering lesser by INR 500-700/MT than SAIL in the same location.” .
He also added that their rebar sales were good in Chennai region during Feb’16 as compared to the last 12 months.
Leave a Reply