Indian TMT bar price moves up
2013-09-05 09:15:10 [Print]
BEIJING (Asian Metal) 5 Sep 13 - The price of TMT bar in India shows an upward trend for the time being supported by the higher ex-works price and optimistic expectation on demand in September. In Mumbai, the price of Fe415 Φ12mm from local mills is INR40,500-41,500/t (USD603-618/t, Excise duty and VAT included). Insiders predict that the price will keep firm in coming two days.
A TMT bar trader in Mumbai reported that the current quotation for Fe415 Φ12mm from local mills is INR41,000/t (USD610/t, Excise duty and VAT included), up by INR1,500/t compared with that of last week.
The source said Indian Rupee has been decreasing for a long time with a decline of over 25% since May of this year. Meanwhile, most local producers import raw materials like scrap from Europe, with US dollar, which leads to a higher production cost. “The scrap price increased by over USD40/t in past several months, and the US dollar is also increasing,” he said. Therefore, mills are quite active in raising offers. The source does not hold any stock of rebar and only purchases materials when customers place orders with him. His monthly sales volume is less than 2,000t.
Another construction steel trader in Mumbai said that the current price of Fe415 Φ12mm is INR41,500/t (USD618/t, Excise duty and VAT included), INR1,300/t higher than that of last week.
He also attributed the price hike to the higher ex-works price. SAIL, Essar, JSW and JSPL all announced to lift prices of long steel and flat steel for September production by INR1,000-2,000/t. Therefore, TMT bar traders followed suit. Holding a stock of around 1,000t of TMT bar Fe415 and Fe500 Φ12-40mm, the source believed that steel price will keep firm in a short term and the market will be better in September when the rainy season is over and the operation of construction projects goes back to normal.
A TMT bar trader in Mumbai reported that the current quotation for Fe415 Φ12mm from local mills is INR41,000/t (USD610/t, Excise duty and VAT included), up by INR1,500/t compared with that of last week.
The source said Indian Rupee has been decreasing for a long time with a decline of over 25% since May of this year. Meanwhile, most local producers import raw materials like scrap from Europe, with US dollar, which leads to a higher production cost. “The scrap price increased by over USD40/t in past several months, and the US dollar is also increasing,” he said. Therefore, mills are quite active in raising offers. The source does not hold any stock of rebar and only purchases materials when customers place orders with him. His monthly sales volume is less than 2,000t.
Another construction steel trader in Mumbai said that the current price of Fe415 Φ12mm is INR41,500/t (USD618/t, Excise duty and VAT included), INR1,300/t higher than that of last week.
He also attributed the price hike to the higher ex-works price. SAIL, Essar, JSW and JSPL all announced to lift prices of long steel and flat steel for September production by INR1,000-2,000/t. Therefore, TMT bar traders followed suit. Holding a stock of around 1,000t of TMT bar Fe415 and Fe500 Φ12-40mm, the source believed that steel price will keep firm in a short term and the market will be better in September when the rainy season is over and the operation of construction projects goes back to normal.
