India: Vizag Steel’s 3rd Price Hike in September

The company has marginally increases long steel – rebar, wire rod & rounds prices by INR 200-300/MT (USD 3-4).

Vizag Steel (RINL) – state owned steel maker under the Ministry of Steel and one of the largest long steel producer in India, has marginally increased prices in rebar & rounds by INR 200/MT and wire rod by INR 250-300/MT (USD 3-4) for rest of Sep’18. The revised prices will be applicable from 25th Sep’18.

This is the third price hike by the company in Sep’18. Price to this, the company had raised prices twice on 1st and 11th Sep’18. On 1st Sep’18, the price hiked for rebar and wire rod by INR 500-800/MT and on 11th Sep’18, it raised prices in rebar and rounds by INR 700/MT, wire rod and structure by INR 500/MT & blooms and pig iron by INR 1,000/MT.

Thus, the total price rise in Finished long steel products by Vizag Steel in September is about INR 1,700-1,800/MT (USD 23-25).

After consideration of price revision, rebar prices that will be offered by the large scale producers will be around INR 43,400-43,800/MT ex- Chennai, Size – 12 mm & excluding GST at 18%. Similarly, 5.5mm wire rod prices offered by large players at around 46,500/MT FoR Chennai, SAE 1008 grade, GST extra.

As per market participants, among all regions in India, company has a significant presence in southern region in terms of rebar sales. On the whole southern region, Bangalore, Chennai, Kochi, & Coimbatore are the preferred markets.

RINL had reported saleable steel output at around 4.5 MnT in last fiscal 2017- 18 and targeting to achieve at 5.5 MnT in the current fiscal year. The company is also targeting to achieve the production capacity near to 6.3 MnT in FY 18-19 and further expand the capacity to 7.3 MnT further.