The Medium/small mills in India who`s contribution in country`s long steel production is more than 60% stated - piled up stock as transporters denied to load materials for Inter or intra states delivery.
SteelMint learned from market participants, the crisis of transportation goods felt in North, West, Central & South regions of India, where more than 50% logistic is affected.
Few of renowned Rebar producers which plays a key role in domestic price movements as well as in supply proportion, have shared their present scenario regarding the price & stock positions.
Below are the comments --
GK TMT in Raipur, Central India shared that,
"Our inventory level rises both in rebar and wire rod above the normal level from the last couple of days owing to indefinite strike by transporters. He also said that supply of material is very limited and that too in the local market only".
-- Today GK TMT prices reduced by INR 500/MT & offered 12-25mm rebars at INR 36,600/MT, ex-Raipur & excluding GST.
--Jalna - Rajuri Steels have mentioned that Inventory level is just more than double to average i:e; 5-6 days earlier to 12-15 days presently, stock exist & selling pressure does present. In the wake of transport strike supply movement has stopped in the initial days but local transportation is having very limited movement.
Today, the plant has reduced prices by INR 600/MT to INR 35,700/MT, 12-25mm, ex-plant & excluding GST.
-- Gujarat - Shreeyam Power & Steel Industries Limited have mentioned that inventory level is rise to almost double in comparison of average basis but considerably movement with limited access does exist. The mill has monthly rebar capacity about 12,000 MT.
-- Chennai -- Tulsyan NEC Limited having rebar production capacity of around 21,000 MT per month, have mentioned that, currently inventory levels are slightly more than average as supply movement for domestic & exports is not happening on certain level. Meanwhile, as per sources medium re-bar producers in the same region have enough inventories due to poor off take.
-- A renowned manufacturer, Cauvery Iron & Steel from Telangana stated,
“As of now we are running 80% production capacity, if strike continues it may come to 50%. And added to this price rise looms over reduced availability of coal".
Cauvery Iron has reduced rebar prices today by INR 500/MT and offered 12mm at INR 37,500/MT ex-plant.
-- Punjab - Mandi Gobindgarh - Deepak Iron & Steel Rolling Mill, has mentioned that inventory level is likely to be finished as we can`t able to procure the material due to strike & existing stock has been supplied in the initial strike where limited movement have been noticed with possibilities & currently most of the mills is closed facing the same situation.
