Steel prices rose in central India over power failure in Urla based plants. Rebar offers up by INR 800/MT, MS ingot INR 250/MT and MS billet INR 350/MT in two days.
Amid power failure in Urla industries based in Central India, steel prices in Raipur have risen sharply in just two days. Rebar market in Raipur has witnessed a sharp hike of INR 800/MT reaching INR 30,700/MT in two days. Also, MS ingot prices in the city have surged by INR 250/MT and MS billet by INR 350/MT in the same duration. However, sponge prices remain unchanged; 82+ FeM C-DRI at INR 17,700/MT and 80 FeM P-DRI at 14,600/MT.
Major reasons behind rise in prices are power failure in central India based Urla industries and mismatched demand-supply.
Due to power failure, out of about 120-130 induction furnaces in Chhattisgarh, 25-30 are going to be affected. In addition, about 60 rolling mills, out of about 180 mills, are also likely to face problems in near-term.
One of the steel manufacturers based in Urla stated, “There are 3 power transformers in the Urla region, which were supplying power to city based plants. However, out of the 3 transformers, 2 are malfunctioning and currently only one is working. So, today in a meeting, Chhattisgarh State Electricity Board (CSEB) has decided to divide Urla industries in two groups A & B to provide each with power on alternatively days (3 days each) in a week.”
Raipur Semi Finish & Finished Long Prices as on 12 Jun’15
| Place | Price | Change | W-o-W | M-o-M | Q-o-Q | Y-o-Y |
| C-DRI | 17,700 (82+ FeM) | 0 | 0 | – 500 | – 1,000 | NA |
| P-DRI | 14,600 (80+ FeM) | NA | – 100 | – 800 | – 2,100 | – 5,200 |
| MS ingot | 25,350 | + 250 | + 550 | + 300 | – 750 | – 5,150 |
| MS billet | 26,100 | + 350 | + 650 | + 400 | – 450 | – 5,000 |
| Rebar | 30,700 | + 800 | + 1,100 | + 1,500 | + 700 | – 5,000 |
Basic prices in INR/MT; ex-works
Source: SteelMint Research
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