SAIL reduced rebar prices by INR 500/MT and wire rod by INR 1,000/MT.
State-owned Steel Authority of India Limited (SAIL) has announced a revision in rebar & wire rod prices for the rest of Jun’18.
The company reduced its rebar prices by INR 500/MT (around USD 7.4) in the retail segment while prices of projects remained unchanged as per sources. However, Wire Rod prices reduced by INR 1,000/MT (around USD 14.8). The new price revision would be effective from 20 Jun’18.
Presently, large steel producers are offering 12-25MM rebar are in the range of INR 43,700-44,200/MT (GST 18% extra) in Mumbai and small & medium based rebar mills are offering it around INR 39,500-40,000/MT (GST 18% extra) for the same location.
As per Wire Rod dealer based in Bhilai, SAIL is now offering Wire rod for MS Grade 8mm material around INR 42,000/MT (ex-mill, GST 18% extra).
The prime reason behind this reduction in steel prices is low seasonal demand in the domestic market which resulted in high inventory level at warehouse.
Rising Production Leading to Competitive Prices:
It seems that domestic steel industries are likely to face tight competition in the near term as large companies had completed their additional capacity expansions.
SAIL’s flagship unit Bhilai Steel Plant has recently started hot trials of bar and rod mills which has a capacity of 0.9 MnT annually. As per reports, it’s also going to increase its production in the upcoming months.
JSPL’s new rebar mill ‘Angul’ has recently started its production unit which will also substantially increase the supply of rebar in the market. The production capacity of Angul is 1.5 MnT annually.
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