Indian Primary Producers Cut Rebar Offers by INR 1,500/MT in Jun’16

Primary steel producers like SAIL, RINL and JSW Steel have reduced their offers by upto INR 1,500/MT in Jun’16, according to market participants.

Indian primary rebar producers have reduced their offers by upto INR 1,500/MT (USD 22/MT) in Jun’16 owing to weak demand and reasonably high inventory levels with stockiest and traders.

Current offers for 12-32 mm Fe 500 are assessed at around INR 32,000-33,000/MT (including Excise of 12.5%, VAT extra) ex-Delhi and INR 33,000-33,500/MT (including Excise of 12.5%, VAT extra) on ex-Chennai basis.

One of the Vizag Steel’s distributor based in Chennai commented that prices have been reduced twice in Jun’16. Current offers are around INR 33,000-33,500/MT (incld Excise) ex-Chennai. It is to be noted that Vizag Steel’s rebar production has increased by about 35,000 MT in May’16, according to ministry of steel’s data.

On the similar lines, another distributor of Steel Authority of India Limited (SAIL) based in Delhi also mentioned that the company has reduced offers by INR 1,000-1,500/MT. Current offers for 12-32 mm are evaluated at around INR 32,500-33,000/MT (incld Excise) in Delhi.

Difference between Primary and Secondary Players Reduces

Price difference between primary and secondary rebar producers have narrowed down from INR 3,500/MT to INR 2,500/MT. This is largely due to increased production of rebar by primary producers. Ministry of steel reported that production by primary steel producers have increased by about 70,000 MT in May’16 against Apr’16.

India’s bar and rod production during Jan-May’16

Quantity in MT
Source: JPC – Steel Ministry
Includes rebars ,Wire Rods & Plain Rounds

Note: above price are 12mm (ex-Delhi), excise duty included, VAT/CST extra