SAIL Reduces Rebar Price by INR 500/MT in Dec’15 – Sources

Increase in production and competitive price among primary producers have pressurized rebar makers to decline their offers.

A primary rebar producer namely SAIL has reduced its offers by 500/MT for Dec’15. While, RINL(Vizag Steel) has rolled over its rebar offers. However, the company has reduced wire rod prices by INR 2,000/MT in Dec’15, as per sources. Price circular of JSW, JSPL and Tata Steel is yet to come.

It is to be noted that RINL in Nov’15 had declined rebar and wire rod offers by INR 2,000/MT and INR 1,000/MT respectively.

Currently, 12 mm rebar offers by primary players are assessed in the range of INR 30,000-31,000/MT (excise duty included and other taxes extra) for projects in north India. But, in the 1st week of Oct’15, prices were assessed at around INR 32,000/MT for the same grade..

For retail segment, rebar is offered at INR 31,000-31,500/MT (ED included and VAT extra).

Price gap between primary and secondary makers

Rebar price gap between primary and secondary producers has reduced to a large extent. For an instance, primary producers in Delhi/NCR are offering 12 mm rebar at INR 30,000-31,000/MT in projects. While, secondary producers’ offers are assessed at INR 28,000-28,500/MT (excise duty included and VAT extra) for the same size. This means, price gap between them has narrowed down by INR 1,500-2,000/MT.

Primary producers rebar offers for Dec’15

Prices are including excise duty; VAT/CST extra
Source: SteelMint Research