Leading steelmakers have maintained Re-bar prices for the current month and price change is expected in mid of the month.
Leading steelmakers’ Long product prices remain unchanged for the current month. Primary steel producers had not increased the Long product prices from the last couple of months owing to sluggish demand from the end-users.
According to the sources, SAIL has maintained Re-bar (12-16 mm) prices at INR 47,000/MT ex-Ludhiana (VAT extra). JSPL has followed the suit and offering 12 mm at INR 47,000/MT ex-Delhi (VAT extra). It is expected that JSW Steel may reduce Re-bar prices by INR 500/MT.
Market participants believe that there may be some price rise by the primary producers in mid of the month.
According to one of the Monnet officials, “We had increased Re-bar prices in the current month by INR 500/MT and offering at INR 38,000/MT-12-32mm (ex-Raigarh; excise & VAT extra). Along with this, we see Re-bar demand is going to improve in the current month and currently running at 48,000 MT per month capacity.”
Primary Re-bar (12 mm) Offers for Sep’14
|
Company |
City |
Price |
Price Change |
|
SAIL |
Ghaziabad |
47,500 |
No |
|
SAIL |
Ludhiana |
47,000 |
No |
|
JSPL |
Delhi |
47,000 |
No |
|
Tata Steel |
Mumbai |
48,500 |
No |
Excise included, VAT extra
Secondary Steel Market
Offer prices have increased by the secondary manufacturers especially in central & western regions by around INR 700-1,000/MT owing to rise in Ingot/Billet prices but trades are thin in finished Long products. According to market participants, trade is going to rise from mid-September.
Secondary Re-bar (12 mm) Prices (in INR/MT) M-o-M
|
Region |
City |
Price |
Price Change |
|
Central |
Raipur |
34,300 |
+300 |
|
West |
Mumbai |
35,800 |
+1300 |
|
North |
Delhi |
36,300 |
-800 |
|
South |
Chennai |
36,000 |
-500 |
Excise & VAT extra
Coking Coal Prices
International Coking Coal prices had declined by around 8-10% in Q1 FY15 against the previous quarter and the same price is rolled over in Q2 FY15. The steel players, who basically import, may get some relief owing to lower Coking Coal prices. However, shortage of Iron ore continues to persist in the domestic market, which may put some pressure on steel prices in the coming month.