SAIL increased rebar offers by INR 2,200/MT in south and INR 2,500/MT in north for Oct’16 deliveries.
The government owned Steel Authority of India (SAIL) has increased rebar prices by INR 2,000-2,500/MT for the month of Oct’16, as per trade sources. The increased price is applicable from 1 Oct’16. Others are likely to follow suit.
During Sep’16, the company also increased rebar prices by upto INR 2,500/MT across India. Other major steel players like JSW Steel, Tata Steel and RINL followed suit and increased offers by INR 2,000-3,000/MT during the same period.
Almost all major steel players were offering 12 mm rebar in the range of INR 29,000-30,000/MT (excise duty included, VAT/ CST extra) in the starting of Sep’16. Offers are now assessed at INR 33,000-34,000/MT for the same size material, depending on the location.
It infers that all the companies has increased rebar prices by INR 4,000-5,000/MT in the last one month only.
The prime reason behind the sudden is surge in raw material prices i.e. imported coking coal in the last two months. Apart from this, demand is also expected to revive in the second half of the current fiscal year, which is also a positive move for domestic steel manufacturers.
Note: Prices are basic, offers by large steel producers
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