Primary Rebar Producers are offering bulk discount on Rebar as sales are unsupported in government projects.
There’s a cut throat competition on pricing strategies going on among all the Primary producers and they are offering Finished steel rebar at very competitive rates to private projects.
One of the sources told SteelMint, “SAIL sold around 35,000 MT Rebars to L&T at INR 36,800-37,500/MT (excise duty included, CST/ VAT extra). Similarly for 12-32 mm Rebars, TISCO had settled a bulk deal for projects at INR 37,000-37,500/MT”. Whereas, the dealer prices of Rebars offered by the same manufacturers are hovering in the range INR 39,500-40,000/MT (excise duty included, CST/VAT extra).
Price Gap reduce between Primary and Secondary Producers
Secondary Rebar manufacturers in Mumbai are offering at around INR 36,000/MT for 12 mm (excise duty included, CST/VAT extra). According to project price, Rebar price gap between primary and secondary makers is just 1,000/MT.
Since starting of the current month, almost all primary Rebar manufacturers slashed their prices in the range of INR 700-1,000/MT or offered discounts to achieve their sales target for the current financial year.
As per industry experts, government projects are still on paper and not on ground owing to which, demand of Rebar from end-users is still lacking. However, in the Union Budget 2015-16, government has allocated around INR 70,000 crore investment in various infrastructure sectors, which is likely to boost the demand of steel if the projects get properly implemented.
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