RINL Cuts Long Steel Offers by 1,000-1,800/MT for Aug’15

RINL reduced rebar and wire rod offers by 1,000-1,200/MT, structure by 1,200-1,800/MT and semis by INR 1,200/MT. Sail reduces rebar offers by INR 750-1,000/MT

Indian steel producers are facing a tough time as demand of steel is diminishing. Primary producers have reduced prices by INR 2,000/MT in the period April-June’15 whereas Secondary producers have reduced price by INR 4,000-5,000/MT in the same period across Indian market.

RINL (Vizag steel) having current capacity of 6.3 MT pa has reduced its rebar and wire rods offers by upto 1,200/MT for Aug’15. In line, SAIL has also reduced it rebar offers by INR 750-1000/MT.

Currently primary producers are offering 12 mm rebar in Mumbai at INR 31,000-32,000/MT, whereas secondary producers’ offers are at INR 26,500/MT for project sales (Basic price, ED and other taxes extra). However, in retail segment, offers are in the range of INR 36,000-37,00/MT for 12-25 mm (including excise duty and VAT taxes extra).

Production dip by 4%

Rebar and wire rod production by primary producers also diminished by 4% in month of June’15 due to high inventory. India imported approx 3,50,000 MT bar and rods (alloy & non-alloy finish steel). Out of these, approx 1,17,000 MT is non alloy steel while the remaining is alloy steel.