Vizag Steel sharply increases Steel prices for Jan’17, others large scale producers likely to follow suit.
Vizag steel (RINL) based in South India has increased steel prices by INR 3,000-3,500/MT for the month of Jan’17 as per sources.
In the previous month Dec’16, the company has also increased steel prices by INR 2,000/MT in two tranches.
Presently, 12MM rebar prices are assessed in the range of INR 34,500-35,000/MT (excise duty, CST/VAT excluded).
The reason to increase in finish steel prices is the rise in imported coking coal prices from the last five months. All the domestic large steel producers who produces steel through blast furnaces route largely use 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 310-315/MT, FoB at the end of Nov’16. However, the prices has corrected around USD 245-246/MT, FoB for Dec’16 end loading.
It is also learned that JSW will increase its rebar price up to INR 3,000/MT for Jan’17.
Other large steel producers like SAIL, Tata steel, and JSPL are most likely to follow suit and may announce the revised steel prices in the coming days.
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