Ban on mines for coming months has increased India’s domestic prices for all semi finish & finish Long products by INR 1,000-2,000/MT in last 7 days.
High prices of material have resulted in low trade volume. Finish buyers postponed their buying due to high price volatility. It is being heard that buyer & seller are doing transaction as per the requirement; restocking is being on hold.
SteelMint in discussion with manufacturers & brokers received the comments, “Semi finish manufacturers are not selling material in bulk quantity owing to high fluctuation in current market.”
“Present situation may last long as market anticipate volatility to continue due to high power tariff announcement any time soon. If power charges increase by 1 per unit in Chhattisgarh, the production cost of MS Ingot will increase by INR 800-900/MT,” they also added.
In South region, there is no effect of mining ban, thus Iron ore supply remain intact as the need of raw material is cater through imported Scrap and Sponge iron from Karnataka (Bellary, Hospet). In contrary, prices of Ingot/Billet & Re-bar in Chennai have corrected by INR 200-300/MT from last trade (Thursday).But in Hyderabad, offers of Ingot/Billet & Re-bar have raised by INR 500/MT W-o-W as prices of nearby states like Chhattisgarh & Maharashtra remain high.
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