Major Indian steel mills like Vizag Steel, JSW Steel and SAIL have announced price hike in long steel prices for October.
Vizag Steel (RINL), has increased finished long steel prices by INR 300-500/MT (USD 4-7) & Pig iron by INR 1,000/MT (USD 14) for Oct’18 deliveries. The revised prices are applicable from 1st Oct’18, as per sources.
As per market sources report, the company has rolled over the base prices of rebar, however trade discount reduced by INR 500/MT. Meanwhile the price hike in structures and rounds by INR 500/MT & Wire rod and Billet by INR 300/MT.
The company has also increased prices for basic grade Pig iron by INR 1,000/MT for Oct deliveries and latest offers would be around INR 31,000/MT, ex-plant & excluding GST at 18%.
After consideration of price rise by large producers, the rebar offers of large mills stood at close to INR 44,300-44,800/MT ex- Chennai, Size – 12mm & excluding GST.
The current price hike by the company attributes to surge in domestic iron ore prices twice by NMDC during Sep’18 & limited inventories with the company for the long steel products.
Also depreciation of rupee against US dollar has resulted to costlier imports of raw materials. Recent, the Indian rupee has touched record low and stood at around 73.3 against USD, which was around 71 last month.
As per market participants, among all regions in India, RINL has a significant presence in southern region in terms of rebar sales. The company’s rebar sales contribute 70% from these states i.e. Tamil Nadu, Kerala, Andhra Pradesh, Karnataka & Telangana.
Vizag Steel (RINL) is a state owned steel maker under the Ministry of Steel and one of the largest long steel producers in India. The company 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.
SAIL & JSW also hikes Rebar prices – 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 upto INR 1,500/MT (USD 21). The new price would be applicable from 1st Oct’18. Rebar offers in Chennai is heard around INR 44,500/MT (GST extra in Chennai).
JSW Steel raised Rebar prices by around INR 1000-1500/MT for October. In Mumbai region rebar prices would be around INR 44,500-45,000/MT (GST extra).
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