Large scale manufacturers are expected to raise their rebar prices further for the Apr’17 deliveries as per the sources in line with the increase in prices of Medium Small and scale producer, expensive raw materials as well as seasonal good demand.
In Mar’17, these manufacturers have already increased the prices from INR 500-1,500/MT; specifically RINL by INR 500/MT and SAIL by INR 1,500/MT.
As per the trade source from SAIL in North Region,“The demand is good in the northern region and inventories are not available with us. The price have increased INR 1,500/MT in the gaps of INR 500/MT thrice for the Mar’17 Deliveries. Further on completion of election, the work in the Northern states have jumped high. If the market scenario remains the same, then there is possibility for further increase in the rebar prices for the Apr’17.”
Price Gap between medium/small scale industries and large scale manufacturer shrinks
As per the market participants the minimum price gap between the both players should be in and around of INR 3,000-4,000/MT which currently near to INR 2,000/MT.
For instance the offer price by large producers are around INR 40,200-40,800/MT with a rebate of INR 500-1,000/MT currently at INR 39,500/MT Ex-Delhi and INR 39,000/MT Ex-Mumbai. While, by other medium and small producers the offers are prevailing at INR 37,000/MT ex-Mumbai, & INR 37,500-38,000/MT ex-Delhi. These prices are inclusive of Excise Duty, VAT/ CST Extra.
Source: SteelMint Research
Leave a Reply