Secondary steel makers see a price rally as demand witnessed across the value chain.
1) High Iron ore prices (in Odisha and Karnataka) resulted in Sponge prices increase: Odisha prices are up by INR 200-300/MT. NMDC Karnataka price up by INR 400/MT. These has inflated the cost of Steel production in the region for approximately INR 500/MT
2) Low availability of Scrap (Imported and Domestic): India imports are down by 30%. Imported Scrap offers remained high at USD 355-365/MT CNF Mumbai (INR 22,500/MT) whereas domestic prices stand at around INR 23,800/MT
3) Low production of MS Ingot/Billet: Production was at 40-50% level owing to low conversion especially in North and West India.
4) Pan India Re-bar buying improved.
Market Comment:
Raipur: “Re-bar sales were excellent yesterday; on an average every Re-bar manufacturer sold about 400-600 MT”, said well know trader based in the region. This translated to high MS Ingot and Billet prices which were increased by INR 300-500/MT.
Durgapur: “High input cost and low inventory triggered the demand”, said Rebar manufacturer based in Durgapur.
Maharashtra: “Buying on an average is good and there is no scope for any correction”, said Re-bar trader based in Mumbai
Gujarat: “There is a shortage of melting Scrap owing to low arrival of ships for breaking and seasonal demand is the main reason for the price hike”, commented a Broker based in Gujarat.
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