After the recent CG High Court’s decision on the uniformity of 3% VAT, which provides equal platform for all state based steel industry, Rebar prices will remain firm & competitive within the state.
At present, Rebar prices are firm in Central India and it is anticipated that prices will remain firm in coming days. Whereas, prices in West India have weakened by INR 500/MT. Offers are prevailing lowest in Durgapur at INR 30,300-30,500/MT and highest in Chennai at INR 34,000-34,500/MT (both prices are basic; taxes extra).
Uniform VAT applicable in Chhattisgarh; CST Clearance still waiting
Large scale Rebar manufactures in Chhattisgarh, who were paying 4% VAT earlier, are now cheered because of the recent CG High Court’s judgment on uniform VAT of 3% for state based Rebar makers. While, the manufacturers are still waiting for commercial tax confirmation in order to uniform the CST to 1% which will make CG rolling mill competitive to supply the material in Maharashtra and Madhya Pradesh.
A Rebar producer based in Raipur stated, “Currently, only few trades are taking place. Inventory level has also increased as traders and stockist are not willing to lift the material and waiting for CG High Court’s decision on CST.”
Large Rebar makers will get the actual benefit of 1% VAT from the earlier 4% VAT on their prices. It is unlikely that they will pass the same benefit to their end-users. Infact, they will enjoy better margin for their products.
Another Rebar manufacturer based in Raipur stated, “Earlier, few large Rebar mills were manipulating and taking advantage of paying 1% VAT lesser but now it has become equally competitive for all state based mills.”
Currently, 12 mm Rebar in Raipur is trading at INR 31,500/MT ex-plant for small rolling mill. Whereas, large rolling mill are offering the material at INR 33,000/MT (both prices are basic; Excise & VAT Extra).
Weekly Price Change of Billet and 12 mm Rebar
| Region | City | Billet Price | W-o-W | Rebar Price | W-o-W |
| Central | Raipur | 28,200 | + 50 | 31,500 | 0 |
| Eastern | Durgapur | 28,000 | + 100 | 30,300 | -300 |
| Western | Ahmedabad | 30,700 | + 150 | 33,700 | + 100 |
| Mumbai | 30,300 | -500 | 33,500 | – 400 | |
| Northern | Mandi Gobindgarh | 31,000 | 0 | 35,600 | – 200 |
| Southern | Hyderabad | 29,400 | + 400 | 32,000 | + 400 |
| Chennai | 30,600 | 0 | 33,900 | 0 |
Basic prices in INR/MT as on 15 Jan’15
Excise duty, VAT extra
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