Primary manufacturers, with a market share of 30% in overall TMT production, all set to increase its Long product offers for May’14. As per the market sources, Tata Tiscon has increased the offers by INR 800-1,000/MT, whereas SAIL & JSW are expected to increase prices by INR 500-1,000/MT. However, the increment is yet to be announced. Tata TMT 12 mm is quoted at INR 47,800-48,000/MT Ex-Mumbai (VAT extra) in retail.
Primary producers have increased the prices regularly in 2014 except Apr’14. Prices in January were raised by INR 500-1,000/MT; INR 700-1,000/MT in February and INR 500-700/MT in March.
Secondary producer have increased the prices by INR 1,700-2,500/MT in May as compared to April prices.
[su_quote cite=”said Tata TMT distributor based in Mumbai“]Increment in price is majorly on good demand from retail segment. Project segment prices remain competitive. [/su_quote]
Primary dealers based in North India reported earlier to SteelMint that SAIL has low inventory and delivery is late; major customer is shifted to other brands. SAIL follow the same pricing for project & retail and due to increase in demand, the stock level remain low.
Primary Producer hike Prices as Secondary Prices remain High over
Low Production
In general, primary producer prices are quoted at premium of INR 4,000-5,000/MT with secondary offer, but in recent days, the gap has squeezed to INR 3,500/MT.
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