Indian Re-bar prices
have shown an uptrend by Rs. 1,000-1,500/t in a span of 10 days. Indian primary
steel producers like JSW and SAIL have made an inflationary and unexpected rise
in finished products for the second time this month on account of higher railway
freight charges while others like TATA are expected to hike their prices too.
“Re-bar prices are
moving up due to cost pressure but not because of actual demand. Recent hike in
railway freights have made coal and iron ore expensive by Rs 100-250/t (depending
on distance). I feel these cost will not be absorbed by the consumers. Steel
prices should correct provided excise is kept unchanged in the Union budget,” said
a big steel trader based at Mandi Govindgarh.
“Demand for finished
products is not on a rise. Infact, market players are waiting for the budget to
be announced on the 16th of this month which would give direction
for future movements,” said market players based in Hyderabad and Chennai.
Jindal Steel has quoted its 12mm Re-bar
prices for Delhi at Rs. 49,500/MT + VAT while Hyderabad prices is trading at Rs. 41,500/MT (Ex Works). 12mm
Re-bar prices for Chennai is hovering around Rs. 44,500-800/MT (Ex works) with
Raipur prices trading at Rs. 38,800/MT (Ex works).
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