India: Primary Producers likely to raise TMT Offers for May’14

Primary manufacturers, who have produced around 8.55 MnT Bars & Rods (as per the Indian Government data released) in FY14 from overall production of around 30.02 MnT, may increase TMT prices in May’14 by INR 700-1,000/MT, commented by most of the dealers.

Primary dealers based in North India reported to SteelMint:

SAIL – Low Inventory in North India: SAIL, which has produced 1.95 MnT Bars & Rods in FY14 as compared to 1.66 MnT in FY13, is likely to raise its TMT Re-bar offers by INR 700-1,000/MT, as its major unit BSP & DSP were into maintenance for some period. The company has low inventory in North India as only 25-32 mm size is available and there is shortage of size 8-12 mm for quite long time.

A primary TMT trader based at Chennai said, “We have increased the buying as we have started to stock the material considering the upcoming monsoon.”

Other Major Producer hike Prices as Secondary Price remain High: JSW, which has contributed 1.59 MnT Bars & Rods for sale in FY14 compared to 1.53 MnT in FY13, may increase its offers by INR 800/MT on robust sale.

Other primary producer such as RINL, Tata  & JSPL, which have produced 2.6 MnT, 1.68 MnT & 0.74 MnT of Bars & Rods in FY14 respectively, have not confirmed yet about any price hike but indicated that they are reluctant to cut their offers.

At present, dealers are offering 12 mm primary TMT at around INR 44,500-45,000/MT Ex-Delhi.

For the whole month of April, secondary TMT market looked strong. In spite of a slight drop of INR 500-700/MT during the week ending April, a M-o-M review reflects a gain of about INR 1,000-1,500/MT.

Quantity in MnT (as per the data released by Indian Government)