India’s major mills who are producing steel through the blast furnace route are under pressure owing to low domestic demand, over-supply situation and significant fall in Indian secondary & global steel prices particularly in China during Nov’18.
Thus, few of large mills have been bound to cut offers and remaining have opted to increase their existing discount/incentives in long products by INR 1,000-2,000/MT (USD 14-28) for Dec’18 deliveries.
RINL: Vizag Steel state-owned under Ministry of Steel has kept base price unchanged in majority of the finished steel product for December compare to the previous month (Nov’18). Although it intends to increase incentives/discounts by INR 1,000-2,000/MT depending on the lifting of material.
JSW Steel: JSW Steel has announced to reduce prices in long products by upto INR 2,000/MT (USD 28) for Dec’18, as per sources. Company has reduced wire rod prices by INR 1,750/MT and rebar by INR 2,000/MT on all India basis.
SAIL (Steel Authority of India Limited)– another state owned steel maker under Ministry of Steel has also announced to rollover in long steel products prices for December as of now, as per an official. Since the Indian market is quite volatile from the last few days, the producer is on “wait and watch” trend. Prior to this in Nov’18, the company has provided trade discount of INR 500-1,000/MT in rebar, depending on the locations.
After consideration of price revision by major mills, the latest price assessment of Rebar through the large players stood at close to INR 41,500-42,000/MT ex-Mumbai. Prices are for 12 mm size & excluding 18% GST.
What May Happen ?
Industry leaders strongly believe that domestic steel prices are likely to rebound soon from the recent fall on expected improved demand as assembly elections in four major states i.e. Chhattisgarh, Madhya Pradesh, Telangana & Rajasthan are expected to be over in the next few days. Another key factor is January to March is the peak season for the construction works which will improve the demand.
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