Vizag Steel (RINL) – one of the largest long steel producer in India, has increased its long steel prices by INR 500-800/MT (USD 7-11) for Sep’18 deliveries, as per company’s latest price circular and are applicable from 1st Sep’18.
The company has rolled over the base prices of rebar, however as per market participants monthly discount/incentives have decreased by INR 500-800/MT on particular sizes, for September deliveries.
Also, the company has increased prices in other long products i.e. structures by INR 500/MT, rounds and wire rods by INR 800/MT & billet by INR 500/MT.
RINL has also increased prices in pig iron by INR 500/MT for Sep’18 deliveries and latest offers stood at INR 29,000/MT, ex-works & excluding GST.
RINL had reported saleable steel output at around 4.5 MnT in last fiscal 2017- 18 and targeting to achieve at 5.5 MnT in the current fiscal year. The company is also targeting to achieve the production capacity near to 6 MnT in FY 18-19.
Steel Authority of India Limited
Another state owned – Steel Authority of India Limited (SAIL) under Ministry of Steel has also declared the latest prices today, in which the company has increased prices in long products by INR 1,000-2,000/MT (USD 14- 28). The new price would be applicable from 1st Sep’18.
As per market participants, SAIL has increased rebar prices by about INR 1,500/MT, structure by INR 1,000/MT and wire rod by INR 1,700-2,000/MT.
After consideration of price revised, rebar prices will be offered by large players close to about INR 42,500-43,000/MT ex- Mumbai & INR 43,000-43,750/MT ex-Chennai for the retail segment. Prices are for 12 mm size & excluding 18% GST.
The prime reason behind the hike in long steel prices by the company is due to sharp surge in prices by medium mills during August on anticipation of improve demand. Other factors that have supported price hike are less inventories amid decent export bookings and increase in semi finished steel prices.
SAIL has recently reported, saleable steel output was around 14.07 MnT in last fiscal year 2017-18 and the company is targeting to achieve close to 18.00 MnT in the current fiscal year.
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