RINL, Tata and Monnet have increased prices by INR 600-750/MT. This is the 3rd price hike in last 4 months. Increase in road & railway freight are the main reasons, stated the company officials. Earlier, price hiked by INR 500-1,500/MT in Jun’14 and INR 500-1,000 in May’14.
Steel prices have increased mainly because of NMDC’s Iron ore price hike by 7% and increase in railway freight by 6.5% in mid-June. Iron ore supply crunch continues owing to mining ban in Odisha & Goa. Also, there is no significant improvement in supply of ore from Karnataka on environment clearance.
Tata Steel marketing official said, Price hike was mainly owing to high road transport freight that increases by INR 500-1,000/MT in all major areas. Since company adopt uniform price across India we need to see all input cost.”
Monnet official confirmed, “Prices have increased by INR 600-900/MT on account of high railway freight. Our Ex-Works offer for 12-32 mm is INR 38,200-38,500/MT (basic; ED & Taxes extra)”.
JSPL &JSW Steel’s new prices are yet to be confirmed.
Rastriya Ispat Nigam has also increased its entire product prices from around INR 350-1,000/MT. This is the 3rd increase from the last 4 months.
Secondary steel prices in last week of Jun’14 have decreased by INR 700-1,400/MT (approx 2-3%)owing to low construction demand. Market participants believe that price will remain under pressure in July & August as construction activity remains low as of monsoon.
Primary 12 mm TMT Offers as on July, 2014
|
Company |
City |
Price (INR/MT) |
|
SAIL |
Chandigarh |
47,500-48,000 |
|
RINL |
Chandigarh |
47,300 |
|
Tata Steel |
Mumbai |
48,200-48,500 |
|
JSW |
Bangalore |
47,000-47,500 |
MOU/Distributor price in bulk quantity, ED included; VAT extra
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