Leading steel producers like SAIL RINL, Tata Steel, JSW Steel and JSPL have reduced their offers by INR 1,000/MT in Jun’16.
Indian primary rebar producers have reduced their offers by upto INR 1,000/MT for Jun’16 on the wake of weak buying from end-users and extreme price competition among them.
A state-owned company, RINL (Vizag Steel) has reduced rebar offers by INR 500/MT twice in Jun’16. Firstly, it corrected its prices by INR 500/MT on 1 Jun’16 and subsequently on 10 Jun’16 by INR 500/MT.
Another state-owned, Steel Authority of India Limited (SAIL) has also slumped its offers by INR 700-800/MT in Jun’16.
Other primary players like Tata Steel, JSW Steel and JSPL have followed suit and corrected offers by INR 1,000/MT in the same month.
Presently, SAIL is offering 12-32 mm rebar at around INR 34,000/MT (excise duty included, VAT/CST extra) in Punjab region for projects.
While, another primary rebar player is offering at INR 33,000/MT for the same size material in the same location. This indicates that SAIL is under pressure to reduce offer further.
Price gap between primary and secondary producers
Currently, primary steel manufacturers are offering rebar in the range of INR 33,000-33,500/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 28,500-29,000/MT.
An official of a large steel player shared, “Primary rebar producers are not only facing competition among themselves but also few premium brands from secondary market are quite active in selling material in large projects.”
Price gap between primary and secondary rebar producers
|
City |
Primary Producers’ Price | Secondary Producers’ Price |
Difference |
| Delhi/NCR | 33,500-34,000 | 30,500-31,000 | 3,000-3,500 |
| Mumbai | 33,000-33,500 | 28,500-29,000 | 4,000-4,500 |
Price are 12 mm, excise duty included, VAT/ CST extra
Source: SteelMint Research
Leave a Reply