Primary steel producers had raised their TMT offers by INR 500-1,000/MT for Mar’14. But, falling semi finish & finish steel prices in secondary market made them to offer discount of INR 200-500/MT to continue the sales volume.
Despite of low demand and down sentiments in secondary market, primary producers had increased their rates by 2-3% for Mar’14 owing to low inventory. But, it seems that dull sentiments are creating difficulties for primary players to make a balance with high prices. SteelMint assessed from the sources that Tata & RINL reduced their offers by INR 200-500/MT in retail sales.
Tata offers 12 mm TMT at about INR 43,500-44,000/MT (NCR region) and RINL at INR 43,750/MT (NCR region).
A trader based at Mumbai has also confirmed that owing to low demand in the secondary market, primary TMT dealers are offering discount to push the sales.
Whereas, SAIL, one of the primary steel producers has maintained high rates owing low inventory.
The company official said, “Market is not witnessing good demand as it should be. However, due to short supply of material, we are able to hold our prices at present.”
Market participants have a view that all primary steel producers have to maintain the low stocks till Mar’14, which may put selling pressure; however we do not see any further price fall in primary market till Apr’14; slow down may be seen in May.
SAIL offers 12 mm TMT at INR 44,500/MT (NCR region).
Note: All prices are inclusive of ED; taxes extra.
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