Indian Large Steel Producer ie Vizag steel (RINL) has increased rebar prices by INR 500/MT second time for Dec’16 as per SteelMint sources. The new price will be effective from 19th Dec’16.
RINL also increased long product prices by INR 1,500/MT in the beginning of this month.
One of the RINL distributor based in Chennai commented that current offers are at around INR 36,000-36,500/MT (including excise duty, VAT/CST extra) ex-Chennai for 12mm.
The main reason behind the continuous increase in finished steel prices is because of the rise in coking coal prices for the last four months. All the large steel producers largely rely on imported coking coal.
To justify the price hike, Australia premium coking coal prices which was at around USD 118/MT, FoB during Aug’16 had reached to the highest level at USD 310/MT, FoB at the end of Nov’16. However, the prices has corrected to USD 250/MT, FoB for Dec’16 loading.
Other large steel producers like SAIL, Tata steel, JSW steel and JSPL are most likely to follow suit and may announce the revised steel prices in the coming days.
Note: Prices are basic, excise duty & other taxes extra
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