Rashtriya Ispat Nigam Ltd (RINL), a corporate entity of Vizag Steel plant has logged highest steel sales volume in the month of Dec for the financial year 2019-2020, SteelMint learnt from market sources. Vizag Steel has achieved a sales volume of around 5.5 lac tonnes, of which 1.2 lac tonnes is attributed to exports.
Addressing the employees on new year, Vizag steel Chairman-cum-Managing Director P.K. Rath said that steel industry is showing signs of improvement on government’s initiative to boost infrastructure. He also highlighted that export have recorded a growth of 119% and special steel reports 79%.
Sri Rath stated that on the raw material securitization, RINL has started participating in e-auctions, tender route, procurement of slimes to supplement iron ore fines in Sinter Plant. Actions were also initiated for tie up with Orissa Mining Corporation (OMC), he added.
Inventory levels drop below 4 lac tonnes
SteelMint learned that inventory levels have dropped below 4 lac tonnes on account of re-stocking. Inventories have dropped by about 30-35% from the previous month’s level of 5.5-6 lac tonnes.
Our channels confirm that Vizag steel has stopped offering re-bars in retail segment on anticipation of price hike and lower stock levels at plant site. Market is anticipating a price hike of INR 1,000-2,000/MT ($14-28). SteelMint’s price assessment for 10-25mm Re-bars by large mills assessed at INR 36,000-36,500/MT.
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