India: RINL raised TMT offers by 2%; rest kept unchanged

In primary steel producers, RINL has enhanced TMT Re-bar offers by INR 850/MT for Apr’14, however SAIL, Tata & JSW have maintained it. Lower prices in comparison to other primary producers made RINL to take different trend, sources said.

RINL, an Indian Government owned steel producer based in Visakhapatnam, has moved up its TMT offers by INR 850/MT. But, SAIL, Tata & JSW have maintained the prices.

Primary TMT is mostly consumed in projects but primary producers are not seeing proper demand as current government is not starting any new projects due to general elections.

“All primary producers were likely to increase the TMT prices because of low inventory. But, less demand in steel market owing to elections has made them to roll over the offers. While, lower prices in comparison to other primary producers made RINL to take different trend,” said a primary TMT dealer based in North India.

“Demand is very poor in Flat & Long products. JSW reduced Flat & Wire Rod prices by INR 500-750/MT, but there is zero stock of TMT which resulted in price stability. It may correct in May-Jun,” said a TMT dealer based at Karnataka.

In secondary, 70% of the total TMT Re-bar production is being consumed in retails. At present, retail demand is sufficient on account of good construction activities and shortage of TMT.

TMT offers have been stimulated by around INR 100-300/MT today in most of the cities as sellers have routine demand which is supporting the prices.

In Mumbai, TMT prices have boosted up by INR 900/MT in a week’s time. Mumbai based a trader said, “Demand is as usual but few small mills are closed and few are in maintenance which led to hike in prices.”

Primary 12 mm TMT Offers in all Major Cities

 ED included Price in INR/MT, VAT Extra