Mandi Gobindgarh Furnace & rolling mill plans to go for 2 day strike which begins from 8 Jul, 2014. Price viability from East to North India improves but transport issues still continue.
Mandi Gobindgarh announces 2 days strike against the sales tax department on power consumption issue. One of the leading manufacturers says, “Strike is being called as sales tax department pressurize the MS Ingot manufacturers to show more production with per unit consumption. That is practically not viable. We consume approx 900-1,100 power units to produce 1 MT MS Ingot considering Sponge iron & Scrap mix. However, the department official says, it takes approx 700-800 power units.”
Other steel manufacturers (rolling mills, Flat manufacturers) in the industry are disappointed with the sales tax department and support the strike.
Other Market
Supply from East to North India has increased after witnessing price correction by INR 600-1,000/MT M-o-M in eastern market (Durgapur & Rourkela). Manufacturers based in Durgapur are offering MS Billet to Mandi at INR 31,600/MT. However, Central India (Raipur, Bhilai & Raigarh) manufacturers offer it at INR 31,400-31,700/MT.
Current Freight Charges by Road from Central & East to North India
- Raipur/Raigarh/Bhilai to Mandi at INR 2,800-3,000/MT
- Durgapur to Mandi at INR 2,600/MT
Traders based in Mandi Gobindgarh shared, “We have purchased material in bulk quantity; however the purchased material cannot be delivered owing to transportation problems. This supports the prices in local market (Mandi) and offers are hovering in the range of INR 35, 500-36,000/MT. Market likely to range bound or sloped down from the current prices.”
He further added that there is lesser chance of any price hike, as purchased material from central & eastern India will be delivered in this week.
Price Difference increased
MS Ingot to Billet: Earlier, Raipur MS Billet & Ingot price difference was INR 500-600/MT but demand from North India (Bulk quantity booked in last 7 days) and power shortage in industrial sector led to shortage of Billet. It increased the price difference between Ingot & Billet to INR 700-900/MT.
C-DRI & P-DRI: In same line, price difference between C-DRI & P-DRI also increased mostly in central & eastern region. Earlier, it was INR 1,000-1,200/MT, which increased to INR 1,700-2,000/MT in Raipur & Durgapur owing to unavailability of Lumps in domestic market.
Budget: Most of the buyers said that Central Budget may surprise the steel industry. They want to hold the buying till the announcement of budget, which is on 10 Jul, 2014. However, the industry doesn’t expect any major changes.
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