Few leading steel producers haves reduced rebar offers by INR 500/MT for July’16, Besides, RINL is also offerings incentive.
Few primary long steel producers especially south based has reduced offers by upto INR 500/MT for July’16 on the back drop of fierce price competitions among themselves.
A dealer based in Chennai of RINL (Vizag steel) shared that, although the company has rollover the rebar prices for July’16 but they will provide the quarterly incentive to the extent of INR 500/MT depending on the lifting of the material, which was not there last quater (Q1 FY’17).
Currently, RINL is offered for 12-32mm material at INR 32,500-32,900/MT(excise duty included, VAT/CST extra) for Chennai in retail segment.
Another large steel south based company has reduced offers by INR 500/MT for July’16.
Another dealer based in Chennai shared that rebar is also offered in the range of
INR 31,000-31,500/MT in projects (excise duty included, VAT/ CST extra) for the same size material in the city of Chennai.
Government state owned Steel Authority of India Limited (SAIL), has yet not announced the rebar offers for July’16.
Price gap between primary and secondary producers
Currently, primary steel manufacturers are offering rebar in the range of INR 31,250-31,750/MT (excise duty included, VAT/CST extra) for 12-32 mm in Mumbai by dealers. While, secondary rebar producers are offering the same size material at around INR 28,000/MT.
Industry leaders believes that rebar price gap between primary and secondary players is likely to sustain in the range of INR 2,500-3,000/MT depending on the brand.
Note: Prices are ex-mumbai, excise duty & other taxes extra
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