Vizag Steel (RINL) has cut its rebar offers by INR 500/MT for Jun’16 deliveries. SAIL, JSW and Tata Steel had already reduced their offers by INR 500-1,000/MT in the last week of May’16.
Primary long steel producer based in south India, Vizag Steel has reduced its rebar offers by INR 500/MT for Jun’16 deliveries.
While, an another south based large steel company has kept its offers unchanged for Jun’16. At the end of May’16, the same company had decreased its prices by INR 1,000/MT, quoted a large distributor in Karnataka.
He also added that currently, rebar is offered at INR 34,000/MT in projects (excise duty included, VAT/ CST extra) for 12 mm in the state of Karnataka. Discount is available on bulk quantities.
Similarly, a state owned company, Steel Authority of India Limited (SAIL) has also rolled over its rebar offers for Jun’16, as the company had already made corrections of INR 500-1,000/MT mainly for retail segments in the last week of May’16, as per a distributor in north India.
JSW Steel started dispatching from Dolvi
A distributor based in west India said, JSW Steel, who has recently started its new bar mill in Dolvi (MH) with a capacity of 1.4 MnT pa, has also started its dispatching of material for specific sizes now in small quantities.
It seems that JSW Steel is focusing to sell material in huge volumes this fiscal, mainly in domestic market due to rising production.
Price gap between primary and secondary producers
Currently, primary steel manufacturers are offering rebar in the range of INR 34,000-35,000/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 30,000/MT.
Industry leaders believe that rebar price gap between primary and secondary players is likely to sustain in the range of INR 3,000-4,000/MT, depending on the brand.
Primary producers’ rebar offers for Jun’16
|
Company |
12 mm Prices in INR/MT | M-o-M Change |
City |
| SAIL | 34,500-35,000 | – (500-1,000) | Delhi |
| Tata Steel | 34,250-34,750 | – (500-1,000) | Mumbai |
Prices are including excise duty; VAT/CST extra
Source: SteelMint Research
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