Almost all the primary steel producers have decreased Rebar prices by INR 500/MT for Feb’15 because of selling pressure.
Slowdown in construction activities and rising imports at a very competitive price in the domestic market since Apr’14 have compelled steel manufacturers to reduce prices.
Primary Steelmakers has been declining Rebar prices since last five months by INR 6,000-7,000/MT including current month by INR 500/MT. The reason behind price correction are continuous selling pressure and all companies are targeting to achieve their sales as financial year ending is approaching.
As per a dealer, “Currently, Tata Steel and SAIL are offering 12-32 mm Rebar at INR 40,250/MT and INR 39,200/MT respectively in Mumbai (Excise included, CST/VAT extra). Both the companies have reduced their prices by INR 500/MT for Feb’15.”
Sources also said, JSW has also declined prices by INR 500/MT and offering the material at below prices. Whereas, RINL (Vizag Steel) has not yet declared any price correction yet. However, no official confirmation has been provided from company people.
Secondary Market
Rebar prices in the secondary market have also declined by INR 500-1,000/MT across India in the current week owing to fall in Ingot/Billet prices in the same range and poor demand in the market. It is anticipated that slipping prices of raw material in domestic market will pressurize finished steel prices.
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