India: Primary Producers hikes TMT Offers to INR 1,000/MT for May’14

Primary steel producers like SAIL, Tata, RINL, JSW and JSPL have increased TMT Re-bar offers to INR 1,000/MT for May’14. High TMT prices in secondary market, decent demand and low inventory have resulted in hike on offers, sources said.

SAIL, Tata, RINL, JSW and JSPL Indian steel producers have to moved up their TMT offers by INR 1,000/MT for the current month.

Major Factors for Price Hike

SteelMint assessed about 4 different reasons for the price hike while learning from sources.

1. Low Inventory: Some of the primary producers like SAIL & RINL have shortage of the material (TMT) which led them to raise their offers.

2. Demand remain above Average: A primary TMT dealer based at Maharashtra said, “Sale of Tata Tiscon is decent across the country barring Maharashtra, where local demand is already dull from last 4-5 days.”

3. Price Hike in Secondary Market: Continuously Price hike in the secondary TMT during Apr’14 built a positive sentiment for primary steel produces and supported them to take benefit.

4. Completion of Elections: Mostly, Primary TMT is utilized in projects, but owing to elections there are no new government projects at present. There is a hope that new projects may come up post elections, which may increase projected sales.

Secondary TMT Market

TMT offers decreased by INR 200-400/MT from previous trade in most of the cities, while Chennai TMT offers moved up by INR 200/MT with INR 700/MT increase in Ingot prices owing to scrap shortage in city.

Primary 12 mm TMT Offers as on May 2014

  Retail Prices in INR/MT, ED included; VAT Extra