According to Mining News Pro -State owned steel maker - Steel Authority of India Limited (SAIL) under Ministry of Steel has further announced increase in Rebar prices by INR 500/MT for the rest of Sep’18 as per an official. While, the company has kept prices unaltered for other long steel products i.e. wire rod and structure.
The new increased prices have come into effect from 21st Sept`18. Earlier in the beginning of the month, SAIL had increased prices in all long products by about INR 1,500-2,000/MT depending of the region.
After recent price hike, Rebar (12 mm) prices will be offered by large players close to about INR 43,500/MT (ex-yard) and INR 44,000/MT landed to Mumbai. Prices are for 12 mm size & excluding 18% GST.
The prime reason behind the increase in finished steel prices primarily large steel companies seeing cost pressure as input cost rises significantly i.e. domestic iron ore prices and imported coking coal prices. Another important factor is rupee has sharply depreciated against USD which has turned imports more costlier. Exchange rate currently stands at 72.70 against 70.25 a month ago. As per the market participants, few large steel companies including SAIL are still having lower availability of material due to low production which keep prices supportive.
SAIL`s 2nd price hike in flat steel - The company has raised HRC and CRC prices also by same amount. After price hike HRC (2.5-8mm) prices are around INR 46,500/MT and CRC (0.9mm) is around INR 51,500/MT (ex-Mumbai, GST extra). In the beginning of the month, it had hiked HRC prices by INR 1300/MT and CRC by INR 1500/MT.
Other major producers like Vizag Steel, Tata Steel, JSW Steel, JSPL are most likely to increase steel prices in the upcoming days.