According to the market sources, the large scale steel manufacturers have kept long steel prices almost unaltered for May’17.
Current offers for 12-32 mm steel re-bars are assessed at INR 39,000-40,000/MT (Ex-Mumbai) and INR40,500-41,000/MT (Ex-Delhi), prices including excise duty of 12.5%.
“As of now, we have rolled over the prices as demand is not much supported. Although, to attract buyers there was need to cut prices but due to expensive coking coal, prices are unaltered” said a marketing executive at one of the large steel plant.
Indian large steel producers contribute about 33 % of total re-bar and rod production. Out of 35.04 MnT production 11.5 MnT is produced by large steel makers and 23.4 MnT by small and medium steel plants, in FY17
Reasons why large steel plants have rolled over prices:
– Sharp fall in spot coking coal prices, offers have dropped from USD 320/MT to USD 230-232/MT FOB Australia
– Falling price difference between large and other medium steel manufacturers. In April the price gap between Large and Medium scale producers had narrowed down to INR 1,500-2,000/MT, which have now increased to INR 4,000-4,500/MT
– Low export orders with steel mills, which is prompting more material to come in the domestic market
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