India: Primary Steel Producers may hike TMT Prices in Jan’14 – Sources

Steel companies like JSW, Essar, SAIL and TATA are contemplating on increasing prices by around INR 1,000 to 1,500/MT mitigating the impact of increasing input costs on its margins.

After keeping prices of Re-bar intact for two months, i.e. Nov’13 and Dec’13, Primary Steel producers in the country may increase the prices by INR 1,000-1,500/MT in Jan’14 believe market sources.

“[su_quote]The gap between Primary and Secondary producers price of TMT is reduced and the demand is good in domestic market, we are expecting that JSW might increase prices of TMT in Jan’14 by INR 1,500/MT, said a JSW dealer based in Hyderabad.[/su_quote]

[su_quote]Offer for SAIL TMT in Mumbai is standing at  almost same level from last 3 months, although Secondary manufacturers have increased their prices by 3-5%. Also, inventory in stock yard remains low although with rising demand. We expect price to go up by INR 500-1,000/MT, said a SAIL dealer based in Mumbai. [/su_quote]

Input cost for producing Finished Steel has increased by INR 300-400/MT. In the recently held auction conducted by NMDC in Karnataka JSW had to buy Iron ore at high prices (which is up by INR 300/MT) compared to last auction prices. Prices of Iron ore in Odisha have also increased by INR 200/MT.

Note: Prices in INR/MT, Prices including all taxes, 12 MM Price