Power charges increase in Hyderabad and Mandi Gobindgarh. Earlier Hyderabad power tariff for rolling mills was 4.73/unit and for furnace, it was 4.37/unit excluding demand charge of Rs 250. Now it is increased by 20% per Unit (approximately). Similarly, Mandi Gobindgarh also witnessed power tariff hike by 9-12% (approximately).
On the other hand, Value Added Tax (VAT) revised in Raipur & Durgapur.
VAT reduced from 5% to 3% in Raipur and increased from 4% to 5% in Durgapur w.e.f. April 1st, 2013.
Consequently Re-bar prices moved up sharply up to Rs 1,000-2,000/MT in India.
At Raipur, Re-bar prices increased by Rs 1200/MT in last 10 days period after implementation of reduced VAT. Demand from southern India also assists Raipur manufacturers to increase Re-bar prices. 20MM TMT quoted at around 33,400-33,600/MT (Basic).
According to experts, prices have gone up due to good demand from southern India, where power prices have been raised resulting cut in steel production. Another reason is that few medium re-bar producers have to shut down their shops in Raipur for some or the other reasons, leading to fall in supply from this area.
In Bangalore, Re-bar prices hiked by Rs 2,000-2,300/MT due to shortage of TMT. A well known trader said, “Production is not good due to weekly power cut for 2 days. Thus, it resulted in shortage of TMT. 12MM TMT is quoted at Rs 45,600/MT (Including VAT)
From the beginning of April, some of the re-bar manufacturers are of the view that the finish goods market is expecting a healthy growth from April onwards.
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