Domestic rebar market registered a significant price fall by Medium/Small Scale manufacturers, which in turn increase the price gap between the both by INR 4,000-5,000/MT.
Weak demand and falling semis prices have forced the medium and small scale producers to decrease rebar prices in order to meet demand supply chain.
The current offers for 12 mm rebar by medium scale rebar manufacturers are prevailing at INR 35,000-35,500/MT ex-Mumbai & INR 35,500-36,000/MT ex-Delhi. While, by large producers it offered at INR 40,000/MT & INR 40,500/MT ex-Delhi. Prices inclusive of 12.5% excise duty & excluding of VAT/CST.
* May prices are till 11 May
One of the marketing head from SAIL stated that the demand with them is stable and the stock are replenish as they had quite good sale in month of Apr’17.
Further on falling coking coal prices he added the biggies have a contract for the coal supplies for quarterly and half yearly basis, spot bookings for the coals are very rarely heard by these integrated steel plants on higher prices.
Indian Bar & Rod Production Increase
– On Y-o-Y, Indian bar & rod production surge about 6% to 35.04 MnT in FY17 compared to 33.15 MnT in FY16. While, on segregation the production surged about 17.56% by large producers & 6% by medium/small scale plants.
– In Apr’17 the total crude steel production witnessed the fall by 2.7% M-o-M with 8.11 MnT in Apr’17 as compared to 8.27 MnT in Mar’17.
Sources: JPC Data and SteelMint Research
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