Indian Primary Producers hike TMT Offers by INR 500- 1,000/MT again

Some of the primary steel producers like SAIL, Tata & JSW have revised TMT Re-bar offers by INR 500-1,000/MT for May’14. High TMT prices in secondary market and high shortage of the material due to suspension of 26 mines have led to price hike, sources said.

SAIL, Tata & JSW have moved up their TMT offers by INR 1,000/MT for the current month.

Why manufacturers hiked prices in the mid of the month?

1. Raw Material Shortage: Suspension of 26 mines in Odisha may create Iron ore shortage in near future. Pig iron prices have moved up by INR 1,500/MT (around 6%) pan India.

However, shortage of primary TMT is already in the market. Some of the primary producers like SAIL & JSW have shortage of the material (TMT) which led to raise offers.

2. Price Hike in Secondary Market: Secondary mills increased prices by 4-6% W-o-W. Price hike in the secondary TMT in a few days owing to rise in raw material offers made primary steel producers to increase the rates.

What Market Players say?

“Finish demand is low in the market; this price hike is primarily due to high raw material prices.”

– A trader based at Kolkata

“Offers are rising day by day and there is no anticipation of down fall further; despite of this stockiest are cautious as real demand is missing.”

– Mumbai based trader

“Speculations are driving the market trend high. Suspension of 26 mines envisaged the shortage of Iron ore in future, whereas no shortage at present. While, it seems that high power tariff will again support the prices.”

– TMT manufacturer based at Raipur

Primary 12 mm TMT Offers as on May 2014

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