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India: Rebar Price Gap Between Large and Medium Mills Narrowed Down in August

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28 Aug 2018, 17:45 IST
India: Rebar Price Gap Between Large and Medium Mills Narrowed Down in August

As per SteelMint assessment, price gap in rebars between large and medium/small mills have declined sharply and stood at around INR 1,000-1,500/MT (USD 15-22) in Aug'18 as against INR 4,500-5,500/MT (USD 64-79) in Jul'18.

The prime reason behind the reduced price gap is rally in prices by medium mills since beginning of August on improved demand. Meanwhile, large mills have not announced any price hike this month, although they have reduced prices by INR 500-1,250/MT in the start of August. However it is expected that they may raise offers in September.

So far in the month, the medium/small mills have increased prices in Mumbai about INR 4,000/MT, Chennai by INR 2,000/MT, Delhi/ NCR by INR 5,000/MT and Hyderabad by about INR 3,000/MT.

Currently in Mumbai - large Mills are offering rebars at around INR 41,000, while by medium/small scale mills it hovering at INR 39,500-40,000/MT. Prices are for 12-25 mm size, ex-work & excluding GST at 18%.

Similarly, in Chennai - large mills are offering rebars at around 41,000-41,500/MT, although the medium & small scale mills are offering at around INR 40,500-41,000/MT for the same size material.

As per market participants, looking at such sharp surge in prices by medium & small mills along with the increase in raw-material cost (Coal & Iron ore prices), the large players (SAIL, RINL & JSW Steel) are planning to increase its long steel prices in Sep'18 as well as for Oct'18. In September, price hike for domestic buyers are expected by around INR 500-1,500/MT (USD 7-21).

28 Aug 2018, 17:45 IST

 

 

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