Clear stocks at major stockyards, better housing demand and positive market sentiments in the new fiscal year i.e. FY15 are the prime factors that support primary producers to hike TMT offers.
SAIL, one of the largest steel producers, has many reasons to increase TMT rates for Apr’14, believed by many market participants. If view of dealers are considered, SAIL may increase its prices by INR 500/MT for April, 2014.
“All stocks in the yards will be cleared by the March-end and it will take 10-15 days for restocking in April. Pressure on project to show the maximum completion by year-end is also providing good demand in March,” said an official of primary manufacturing company.
JSW, having total installed capacity of 1 MnT of Bars & Rods, is about to raise TMT prices by INR 700-1,000/MT, says sources close to company’s official.
“More demand and less supply will lead to upsurge in TMT offers. JSW have fewer inventories to deliver all the requirements,” said a JSW’s TMT dealer based at Bangalore.
In current scenario, Karnataka is struggling with power cut issues and already there are only a few rolling mills which are operating. They have inched up their offers by INR 2,000-2,500/MT in the secondary market.
“We have good demand but we are getting only 40% of the required material which is benefited us more nowadays,” he added further.
However, RINL has not decided yet. But, a company’s official has commented on positive sentiments of the TMT market.
Construction activities increased in India with beginning of summer which improved TMT sale as well as resolving the financial crisis.
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