According to sources, Indian large scale producers like JSW & RINL (Vizag Steel) decreased their rebar offers by INR 500-1,000/MT (USD 8-15) for Jun’17 deliveries.
The fresh offers for 12-32 mm rebar by the producers are approx INR 37,000-38,000/MT; Ex Mumbai and INR 38,000-39,000/MT; Ex- Delhi inclusive of 12.5% excise duty. The basic price will equivalent to INR 32,900-33,800/MT; Ex-Mumbai and INR 33,800-34,700/MT; Ex-Delhi.
Weak demand over sharp fall in prices by medium/small scale producers and low export bookings have forced to the large manufactures to reduce their prices.
Another major reason sited is upcoming GST which is going to be implement from 1st Jul’17. This has influenced the manufacturers and stockiest to clear inventories before the implementation of the GST. Hence, booking with the large producers is quite low.
Basic 12mm Rebar Prices
| Location | June’17 Offers | Price gap | |
| Large producers | Medium/Small producers | ||
| Ex-Mumbai | 33,500 | 30,600 | 2,900 |
| Ex-Delhi | 34,400 | 31,000 | 3,300 |
| Ex-Chennai | 33,500 | 29,400 | 4,100 |
| Ex-Hyderabad | 33,400 | 29,900 | 3,500 |
Basic Prices in INR/MT
In India’s total bar & rod production of 35.03 MnT in FY17, the large producers contributed around 43% (11.6 MnT) and rest 57% (23.5 MnT) being produced by medium/small scale producers.
*June average prices are till 6 June
Sources: SteelMint Research
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