Leading rebar producers namely SAIL, JSW and RINL have reduced their offers by INR 1,000-2,500/MT in Jul’16, as per market participants.
Indian primary rebar producers have reduced their offers by upto INR 2,500/MT in Jul’16 owing to weak domestic demand and excess inventory level with traders/ distributors.
Current offers for 12-32 mm are assessed at around INR 30,000-30,500/MT (including Excise of 12.5%, VAT extra) on ex-Delhi basis and INR 30,500-31,500/MT (including Excise of 12.5%, VAT extra) on ex- Chennai basis.
One of the Vizag Steel’s distributors based in Chennai commented that prices have been reduced thrice in Jul‘16 by upto INR 2,500/MT. Current offers are around INR 30,500-31,000/MT (including Excise duty, VAT extra) ex-Chennai.
He also addded that another primary rebar producer based in south India is offering the same size material at a very competitive rate of around 30,000/MT.
On the similar lines, another distributor of SAIL based in Delhi also mentioned that the company has reduced offers twice in July’16 by upto INR 1,750/MT. Current offers for 12-32 mm are assessed at around INR 30,000-30,500/MT (including Excise duty, VAT/CST extra) in Delhi.
Price difference between primary and secondary players reduces
Price difference between primary and secondary rebar producers have moved down from INR 3,500-4,000/MT to just INR 1,000-1,500/MT, depending on the brand.
Currently, all primary steel manufacturers are offering rebar in the range of INR 30,000-30,500/MT (excise duty included, VAT/CST extra) for 12-32 mm in Delhi. While, secondary rebar producers are offering the same size material at around INR 29,000-29,500/MT.
Note : Prices are basic, excise duty & other taxes extra
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