Government owned – Vizag steel (RINL), one of the India’s largest long steel producer has reduced Rebar price by INR 750-1,000/MT (USD 11-15), also the producer has cut Wire rod prices by INR 500/MT (USD 8), as per price circular released by the company.
The company has reduced Rebar prices for 8 to 16mm by INR 1,000/MT, while for 20 to 32mm sizes the price reduction is about INR 750/MT. The new prices are applicable from 1st Aug’18.
Meanwhile as per participants, Structure, Round & Pig Iron prices remained unaltered by the producer.
The latest Rebar prices for 12-25mm by large scale producers are assessed at around INR 41,500-42,000/MT. However through the Medium/small mills rebar prices hovering at INR 39,000-40,000/MT. The above prices for Chennai – South India & excluding 18% GST.
As per the market participants other large scale mills like SAIL,Tata Steel, JSW and JSPL are also planning for price corrections in long products, which soon to be declared.
As per them, presently Indian steel producers both medium & large scale are poised over poor demand in the domestic market due to ongoing monsoon season which led to rise in inventories. Hence, the producers have opted for price cut in line to fetch bookings.
About Vizag Steel (RINL)
As per company’s website, Rebar sales for projects is about 25% while rest is largely sold through retailers for construction activities.
Among all regions in India, company has a significant presence in southern region in terms of rebar sales. In southern region, Bangalore, Chennai, Kochi, and Coimbatore is the preferred market.
RINL had reported saleable steel output at around 4.5 MnT in last fiscal 2017- 18 and targeting to achieve at 5.5 MnT in the current fiscal year. The company is also targeting to achieve the production capacity near to 6 MnT in FY 18-19.
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