Long Steel Prices Increase by upto INR 2,000/MT in Indian Primary Market

Indian primary steel producers have surged rebar and wire rod offers by upto INR 2,000/MT post imposition of minimum import price.

Steel manufacturers in Indian primary market have raised their rebar and wire rod offers by upto INR 2,000/MT w.e.f 8 Feb’16 after the government imposed minimum import price (MIP) on various steel products.

In starting of the current month, almost all the primary rebar producers had kept offers stable on expectation of positive initiative taken by the government.

As per a large dealer based in Chennai, “RINL (Vizag Steel) has increased rebar prices by INR 750/MT and wire rod by INR 1,200/MT for the current month.”

Another dealer based in North India shared, “Steel Authority of India Limited (SAIL) has increased rebar offers by INR 1,000/MT in retail and in projects by INR 1,500/MT for the same month. Besides, wire rod offers up by INR 2,000/MT.”

Another dealer based in Mumbai said that Tata Steel has also increased rebar offers by upto INR 2,000/MT for Feb’16.

Presently, offers for 12-32 mm rebar are within INR 32,500-33,000/MT (excise duty included, VAT/CST extra) in projects segment. While in retail, the same size material is offered at around INR 33,500-34,000/MT in Punjab region.

Similarly, wire rod offers by one of the primary steel producers, are assessed at around INR 31,000/MT FoR in Punjab for 7 mm. While, secondary players in Raipur are offering in the range of INR 32,000-32,500/MT (including excise duty 12.5%, and 4% VAT) for 5.5 mm.

Price gap between primary and secondary producers

Currently, primary manufacturers are offering rebar at INR 32,500-33,500/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 31,500/MT. Thus, it can be inferred that price gap between them is now around INR 1,000-2,000/MT, which was nil in the last month.

Primary producers’ rebar offers for Feb’16

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