High prices of Semi Finish due to low production holds finished steel buying as buyer wait for price correction. Low cost and increase production of Sponge iron upsurges the conversion spread.

West Bengal (Durgapur): Low production of MS Ingot/Billet and Re-bar owing to power cut from past few days have resulted in price hike by INR 1,000/MT in a week’s time.

[su_quote cite=” Commented a Sponge manufacturer”]“Currently, we are under pressure to sell our Sponge. The power cut from past 10 days have resulted into production downfall (Ingot/Billet) which had led to low sales of the material(sponge) across Bengal market. Therefore, we have reduce our sponge prices by INR 600/MT in W-o-W[/su_quote]

Punjab (Mandi Gobindgarh): SteelMint heard that production of Finished Steel has come down in local market due to cut in VAT percentage, which will be applicable from 01 Feb, 2014. Announcement of the news (Reduction in VAT) is fluctuating Semi Finish & Finished Steel market. In the previous week market fluctuated in the range of INR 100-300/MT.

[su_quote cite=”Shared a Broker based in Mandi”]We expect market to improve in the coming days for the reason that announcement of cut in VAT holds the sale of Finished Steel at present and buyers are cautions to purchase the material. Implementation of reduced VAT will boost our sales in local market, also we will be able to sell our material in nearby places.[/su_quote]

Chhattisgarh (Raipur): Market gained momentum in the range of INR 200-300/MT in a week. Volatile sales of Re-bar & Structural items have reserved Ingot/Billet offers between INR 29,500-30,500/MT in whole week.

Any major changes are not observed in Sponge prices owing to high production of Sponge pellet and equal purchasing by Ingot/Billet manufacturers against last month.

Maharashtra (Mumbai): One of the largest producer & consumer of Finish steel products, offering Structure at same level as compare from 01 Jan, 2014.

With increase in the production of Re-bar, sales have remained at same level which resulted into less buying of Semi Finish & Finished Steel in local market.

On the other hand, increase in the sales of Re-bar across the country is a sign of relief for manufacturers.

Tamil Nadu (Chennai): Shortage of Scrap and improved demand of Finished Steel have led to improve the prices by INR 1,500/MT for Ingot/Billet & Re-bar in a month’s time.