India: Large Producers Kept Long Steel Prices Unaltered; Rebate Announced

Indian large scale producers namely SAIL, RINL, Tata kept their rebar prices unaltered for rest of May'17 deliveries. However in later May'17, the producers increase the rebate amount in the base prices.

One of the distributor of SAIL, stated that "Public owed SAIL has increased the rebate amount on the trade price by INR 800-1,000/MT and might cut the prices in coming month as the price gap between the large scale producers and the medium scale producers have increased rigorously".

The offers prices for 12 mm rebar by large producers are currently at INR 39,500-40,000/MT while by medium/small scale producer at INR 34,500-35,500/MT ex-Mumbai. The prices are including Excise duty & excluding CST/VAT and rebate.

A RINL Marketing person based in Karnataka stated that "we haven't cut any prices in the month of May as the coking coal still expensive but we have been giving rebate of INR 1,000-1,500/MT, from region to region."

Further he added that "as the demand has declined, increasing the stock with them. If the alarming situation comes ahead with lull demand there team will further think on the price cut".

Price Gap between the Large and Medium Scale Producers:

The price gap between these large and medium scale manufactures have been gradually increasing with time. Currently, price gap has widened above INR 5,000/MT which was at INR 4,000-5,000/MT in the start of May'17 and INR 3,500-4,000/MT during Apr'17.

*Monthly Average Prices are till 22nd May
Sources: SteelMint Research