Vizag Steel Plant (VSP) also known as RINL has increased Finished Long Steel – Rebar prices by INR 500-1,500/MT (USD 7.5-23) for May 2018 deliveries as per company’s price circular. During April’18, the company had raised prices up to INR 500/MT (USD 7.50).
Vizag steel is a state owned producer in South India with an annual capacity of around 6.3 MnT crude steel. The Company is also one of the largest long steel producers in India.
Key Factors behind Price Hike as per market participants
Demand – Improved demand in domestic market & inquiries have forced the producer to increase prices amid better margins and has further increased the prices for May deliveries as there is a upward trend from last few months.
Inventory – With concern of limited availability and inappropriate inventories in stock yard have also played a key factor. SteelMint anticipated these optimistic sentiments among trade participants.
Healthy export bookings – In a view of relished response for export tenders & it has been registered itself a positive movement with better conclusion.
Rising prices by medium & small mill producers – Medium & small producers who captured around 60-65% long steel production have kept prices higher from last few months. Hence, the large scale producers has to maintain the price gap with them.
Vizag Steel’s domestic price hike assessed for Rebar by INR 500/MT, Structure by INR 750-1,500/MT as per location & Wire Rod by INR 500-1,000 location wise. The company also raised Pig Iron prices by INR 1,400/MT & Billet prices by INR 1,250/MT, as per the price circular w.e.f. 1st May, 2018.
The revised offers are as follow –
1. Wire rod (5.5mm, HC 50 – HC 85) at INR 46,300/MT.
2. Rebar (8mm IS1786 Fe500D) at INR 46,830/MT.
3. Pig iron (LSB) at INR 30,500/MT.
4. Channel (200×75 mm, IS 2062 Gr. A) at INR 41,780/MT.
5. Billet (125×125 mm, IS 2830) at INR 36,660/MT.
Prices are excluding 18% GST & ex-plant, Vizag.
Leave a Reply