Input cost burden for steel mills is to grow further in Uttar Pradesh after recent announcement of power tariff hike, SteelMint learned from mid sized mills based in Ghaziabad & Muzzafarnagar, known as the major producers of steel in the state.
The prevailing power charges in U.P for industrial consumption was near to INR 6.30-6.40/MT which will be increased to INR 6.80-6.90/MT, hiked upto 10% for mid sized steel mills.
The tentative cost of Ingot/Billet producers in the state will rise by INR 400-500/MT and for standalone re-rollers marginally by INR 100-200/MT.
As per assessment on 3rd Sept’19, in Ghaziabad the prices were reported at INR 28,300-28,500/MT for MS Ingot, INR 31,500-31,700/MT for 12mm Rebar & INR 22,500/MT for selected (melting) scrap, ex-works & excluding 18% GST.
On an average, the standalone mills (including hot rolling mills) in U.P (Kanpur, Ghaziabad & Muzzafarnagar) produces about 5,000-7,000 MT rebars on daily basis and supply mostly in NCR region including local market. There are about 30 operational steel mills in U.P, as reported by manufacturers.
Leave a Reply