Vizag Steel- a state owned and largest finished long steel producer in southern India, has kept its finished long steel prices unchanged for April deliveries, as per SteelMint’s trusted sources. Current 12 mm rebar trade reference prices are at around INR 39,500-40,000/MT ex-work & excluding 18% GST.
The key factors behind announcing a roll over in prices was – lack of trades due to complete lock down over COVID-19 fears and piling up stock which is being heard from almost all large mills including private large mills despite low capacity utilization.
With limited buying inquiries being notified through their trade associates and existing stocks in hand, they may put future bookings on hold till the time there will be material lifting which will ease some inventory levels.
Further the market participants are curious for the upcoming price trend whether market direction will hold the existing finish long steel price range or would be take up a negative direction as there is sufficient price gap between the large and medium/small scale mills.
Few trade associates based in India’s key markets anticipate that prices are likely to be rolled over by other state owned large mills just to maintain market sentiments but for very specific terms and trade prices might have to adjust as per market requirement as soon as activities resumes.
In addition to it is being learned that RINL has extended the associates MoU till 30th Apr’20 to complete or fulfill the trade volume, which was due to expire on 31st Mar’20.
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