India: Topworth is selling Structure on Low Prices than Others – Why?

Topworth Steels is selling its structural items on lower prices as compared to other structure manufacturers based at Central India.

Topworth, a well known brand based at Central India with production capacity of 180,000 MT pa offering its structural item at lower prices than the other brands based at Central India.

When the prices of Structures moved up by INR 800-1,200/MT in a week’s time and offered 200 mm I-Beam around INR 35,000-35,100/MT, Topworth selling its 200 mm I-Beam at INR 34,500/MT. In a conversation with official person of the plant that wishes to consider as anonymous said, “Increased inventory level and low demand from projects are building pressure on us. We have around 5,000 MT of Structural stock so we are offering material at that prices. We also stop producing irregular items to remove further pressure.”

SteelMint assessed the following reasons:

• The plant majorly supplies material to Maharashtra & Gujarat. At present, buyers are not showing interest to purchase Structure from Central market because of higher prices compared to local market
• Elections halted the government projects and also affected transporting. Earlier, freight charge from Raipur to Mumbai was around INR 2,500-2,600/MT which has now moved up to INR 2,800-3,000/MT

 Manufacturers based at Central India such as Mahamaya, SKS, MSP, Khayati & Sarthak are offering 200 mm I-Beam at INR 35,000-35,500/MT. While, there are some traders who are selling material at INR 34,800-34,900/MT as they had stocked material before the price hike.