Indian Long Steel Offers Jump again by INR 500-1,000/MT

Indian primary steel producers have surged rebar and wire rod offers further in the range of INR 500-1,000/MT w.e.f 11 Feb’16.

Most of the steel manufacturers in Indian primary market have raised their rebar and wire rod offers 2nd time in the range of INR 500-1,000/MT w.e.f 11 Feb’16. On 8 Feb’16, few producers had already increased offers by upto INR 2,000/MT after MIP imposition on various steel products on 5 Feb’16.

As per a large dealer based in Chennai, “RINL (Vizag Steel) increased rebar prices twice by INR 750/MT for all sizes and by INR 500/MT for 16 mm on 8 Feb’16 and 11 Feb’16. However, the company had also surged offers for 16 mm by 1,000/MT in Februrary starting. Similarly, wire rod offers also went up by INR 1,200/MT and INR 800/MT on the same respective dates.”

Another dealer based in north India shared, “Steel Authority of India Limited (SAIL) increased rebar offers by INR 1,000/MT on 8 Feb’15 in retail and further by INR 650-800/MT on 11 Feb’16, depending on the location. Besides, wire rod offers moved up by INR 2,000/MT on 8 Feb’16 and by INR 500/MT on 15 Feb’16.”

Presently, offers for 12-32 mm rebar are assessed at around INR 33,000/MT (excise duty included, VAT/CST extra) in projects segment. While in retail, the same size material is offered at around INR 34,000/MT in Punjab region.

Similarly, offers by few primary producers for 12-32 mm rebar are in the range of INR 32,000-32,500/MT (excise duty included, VAT/CST extra) in retail segment in Chennai.

Price gap between primary and secondary producers

Currently, primary manufacturers are offering rebar at INR 33,000-34,000/MT (excise duty included, VAT/CST extra) for 12-32 mm in retail segment in Mumbai. While, secondary rebar producers are offering the same size material at around INR 31,000/MT. Thus, it can be inferred that price gap between them is now around INR 2,000-2,500/MT, which was nil few months back.

Primary producers’ rebar offers for Feb’16

Prices are including excise duty; VAT/CST extra
Source: SteelMint Research