Tata Steel has kept Re-bar prices unchanged for September 2013 for retail buyers, however increased the prices by Rs 1,000/MT for project sales, according to trade sources.
Company has consecutively rolled over its prices in retail market since August, before it had slashed prices by around Rs 700-800/MT in the month of July 2013. Current offers given by TATA in Raipur is at Rs 51,300/MT, in Mumbai is at Rs 51,100/MT, in Delhi is at Rs 51,800/MT and in Chennai is at Rs 53,200/MT. Prices are on cash basis and are inclusive of all taxes.
India produced approx 28.85 MnT Bars and Rods in FY 2012-2013 out of which TATA is the third largest producer and has produced 1.64 MnT Bars and Rods according to JPC report. RINL is the largest producer followed by SAIL. Secondary steel manufacturers hold a significant share in India's total long steel production.
Market participants are expecting further a hike of Rs 1,000-1,500/MT in Re-bar prices by other primary producers (VSP, SAIL). Reasons behind the expectations are below:
o Import of coking coal is getting expensive.
o Improved steel export.
o Imports are not viable.
o Recently hike in secondary Re-bar market.
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