Indian Primary Rebar Producers Increase Offers by INR 1,000/MT

RINL, SAIL and JSW Steel have increased rebar prices by INR 1,000/MT for Apr’16.

Indian primary long steel producers have continued to increase offers after the MIP was implemented on 5 Feb’16 by the government.

Post MIP, all primary steel players had increased rebar prices by INR 5,500-6,000/MT, considering price rise of Apr’16.

As per a large rebar dealer based in Chennai, RINL (Vizag Steel) has increased rebar offers by INR 1,000/MT and wire rod by around INR 2,000/MT for Apr’16.

Another dealer based in north India shared, Steel Authority of India Limited (SAIL) has also increased rebar prices by INR 1,000/MT and wire rod by INR 2,000/MT for the duration.

As per trade sources, traders and stockist had restock the material last month on anticipation of increase in demand in the upcoming month. He also added, there is also tight supply of material in the market.

Internationally, rebar and wire rod prices are also moving up, which is also impacting domestic market.

Currently, rebar and wire rod prices in China stand at USD 340/MT and USD 348/MT, FoB main port respectively; have moved up by around USD 70-80/MT since starting Jan’16.

Price gap between primary and secondary producers

Currently, primary manufacturers are offering rebar in the range of INR 35,000-36,500/MT (excise duty included, VAT/CST extra) for 12-32 mm in Mumbai. While, secondary rebar producers are offering the same size material at around INR 31,200/MT.

Primary producers’ rebar offers for Apr’16

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

Note: Prices are 12mm  basic, excise duty & other taxes extra