India: Vizag Steel Cuts Price by INR 1,500-2,000/MT (USD 21-29)

State owned & one of India’s largest finished long steel producer – Vizag Steel has sharply reduced its prices by INR 1,500-2,000/MT (2-4%) for remaining of Jun’19 deliveries.

It seems slow down in demand globally along with significant drop in prices by mid sized mills (secondary mills) has forced mill to cut prices in line to ramp up sales.

With the recent price revision, Rebar price range of large scale mills stood at INR 39,700/MT as against last assessment of INR 41,200/MT; ex-Chennai (stock yard), size 12mm & excluding 18% GST.

Notably, the prices of secondary mills have constantly dropped on account of limited demand and as per assessment the mid sized mills have reduced Rebar & Billet by INR 1,000-2,000/MT (USD 14-29) during Jun’19 and are currently trading low range of almost one and half year (18 months) as the similar price range were seen during Dec’17.

The current price gap in Rebars between large & medium scale mills hovering around INR 6,000-7,000/MT which should be not more than of INR 5,000/MT, as stated by distributors of renowned brands.

In context to export demand, it is being learned that the large mills are unable to compete with global offers which in turn poor response in floated export tenders.

The company had floated 50,000 MT billet & bloom export tender which was due on 11 Jun’19. As per sources 150*150mm fetched bids around USD 420-425/MT, FoB, however no confirmation was received yet from company officials regarding the tender results.

RINL eyes 6.4 MnT liquid steel in FY20

State-run Rashtriya Ispat Nigam Ltd is eyeing to produce 6.4 MnT of liquid steel and 5.8 MnT of saleable metal in the financial year (FY) 2019-20.

The public sector undertaking (PSU) will soon to signing a Memorandum of Understanding (MoU) in this regard, with its administrative ministry – Ministry of Steel.

During the FY18-19, Rashtriya Ispat Nigam Ltd (RINL) had a target to produce 6.1 MnT of liquid metal but could only produce around 5.5 MnT. The state-run firm produced 5 MT of saleable steel against the target of 5.5 MT.