Primary Players roll over Rebar Prices, Offers competitive for Projects

Primary Producers roll over Rebar prices for May’15. Gap between Primary and Secondary narrows down to INR 2,000-3,000/MT.

Primary steel manufacturers have rolled over Long steel prices from April’15 to May’15. Last price decline was noted in Mar’15, by INR 500-700/MT. Since then, prices have been kept unchanged. Presently, Primary manufacturers are offering 12-32 mm Rebar at INR 37,500/MT +VAT to dealers, whereas offers from secondary mills for the same size is ranging between INR 34,800-35,200/MT +VAT.

Lower price gap between Primary and Secondary mills have impacted market share of Secondary steel mills, since buyers prefer primary to secondary brand. The gap that was earlier at INR 4,000-4,500/MT has narrowed down to INR 2,000-3,000/MT

Primary manufacturers are offering Rebar at very competitive prices in project sales; prices are in the range of INR 36,000/MT for 12 mm (excise included, VAT/CST extra). However retail prices are hovering in the range of INR 38,000-39,000/MT (excise included, VAT/CST extra).

Imported Bar and Rod: Bar and Rod import to India in FY’15 was 1.67 MnT as per JPC- Steel Ministry. According to the provisional custom data, import in Apr’15 (till 20th) is approx 41,000 MT. Presently, China FoB offers are at USD 332-338/MT, up by USD 5 (W-o-W), CIF India offers are approx USD 390-410/MT, but due to BIS norms no major deal is heard. Importers are offering 10 mm Rebar at INR 33,300/MT+ VAT (Ex- Chennai).

Primary Rebar (12 mm) Offers for May’15

Note: Excise Included, VAT/CST extra, #prices as on 5 May’15
Source: SteelMint Research