Indian long steel sentiments are progressively improving from last week as there is demand supported by the rise in the billet offers.
Indian premium long steel makers have also been increasing the rebar offers in order to extract the major benefits in this scenario of growing demand.
Some major long steel makers:
– Shri Bajrang Ispat and Power Ltd (Goel TMT); the price setter in Central Region, Raipur have increased the offers by INR 200/MT with current offers for 12MM are witnessed at INR 31,200/MT ex-plant.
– One of the Premium Steel Makers in North Region M/s Rathi Steel Ltd increased their rebar offers by INR 100-200/MT to INR 32,100-200/MT, Ex-plant, Delhi.
– Scan Steel Ltd, based in Eastern Region; Odisha produce Shristhi TMT kept their offers unaltered in the start of the week with 12MM at INR 31,000/MT.
Although, these days GST is a matter of concern for stockiest and manufacturers for their regular trade activities.
GST to drive the Indian Steel Market
The growth in the Indian steel sector has been driven by domestic availability of raw materials such as iron ore and cost-effective labors. Indian Steel Industry contributes to 2% of GDP of the country.
Presently the steel industry participants are very unclear with the new tax to come to implementation from 1st July’17 which is known as GST (Goods and Service tax).
This is influencing the stockiest to liquidate their stocks and stockiest are not in favor of booking bulk quantities.
According to one of the stockiest based in Delhi, “Currently we are not maintaining the stock with us as after the GST to be implement we will need to clear the stock at the earliest in 60 days”.
He further added that we need to still wait and check out the post effect of GST once it is implemented.
As per the recent data published, the steel sector might be accounted in the 18% tax slab post implementation.
Sources: SteelMint Research
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