Indian TMT bar market sees no improvement
2015-05-19 09:06:47 [Print]
BEIJING (Asian Metal) 19 May 15 - The TMT bar market in India runs very slowly with shrinking demand from downstream consumers. In addition, prices can hardly go up with the brunt of low-cost imported materials. Insiders predict that the price will come down slightly in the short term.
A TMT bar trader in Mumbai reported that the current price of TMT bar Fe500 Φ10-12mm from local mills is INR36,6600/t (USD575/t) all taxes included, down by INR400/t (USD6/t) compared with that of two weeks ago.
According to the source, the demand from downstream consumers continues to shrink and customers are reluctant to place orders seeing prices of raw materials are on the downward trend. “The price of billet is around INR28,000/t (USD440/t) at the moment, down by INR4,000/t (USD63/t) in past three months,” he says, adding that prices of TMT bar imported from China are INR1,500-2,000/t (USD24-31/t) lower than those of local materials. As he reveals, the Indian government is trying to carry out anti-dumping policies to restrain importing Chinese low-cost materials.
Another construction steel dealer in Gujarat said that the current price of Fe500 Φ10-12mm from local mills is INR36,000/t (USD565/t) all taxes included, falling by INR400/t (USD6/t) compared with that of two weeks ago.
“During the quarter ended on March 31, Indian finance costs increased by 9.4% on a year-on-year basis,” he says, adding that Indian steel companies continue to operate in a tough environment of higher cost of production and lower steel prices. The source reveals that JSW Steel Ltd reported an 87% year-on-year drop in its consolidated net profit for the above-mentioned quarter due to lower sales and increased finance costs. According to the source, steel traders are also bearing losses at the moment. His TMT bar stocks have reduced from the regular level of 1,000t to the current 400t since last October.
A TMT bar trader in Mumbai reported that the current price of TMT bar Fe500 Φ10-12mm from local mills is INR36,6600/t (USD575/t) all taxes included, down by INR400/t (USD6/t) compared with that of two weeks ago.
According to the source, the demand from downstream consumers continues to shrink and customers are reluctant to place orders seeing prices of raw materials are on the downward trend. “The price of billet is around INR28,000/t (USD440/t) at the moment, down by INR4,000/t (USD63/t) in past three months,” he says, adding that prices of TMT bar imported from China are INR1,500-2,000/t (USD24-31/t) lower than those of local materials. As he reveals, the Indian government is trying to carry out anti-dumping policies to restrain importing Chinese low-cost materials.
Another construction steel dealer in Gujarat said that the current price of Fe500 Φ10-12mm from local mills is INR36,000/t (USD565/t) all taxes included, falling by INR400/t (USD6/t) compared with that of two weeks ago.
“During the quarter ended on March 31, Indian finance costs increased by 9.4% on a year-on-year basis,” he says, adding that Indian steel companies continue to operate in a tough environment of higher cost of production and lower steel prices. The source reveals that JSW Steel Ltd reported an 87% year-on-year drop in its consolidated net profit for the above-mentioned quarter due to lower sales and increased finance costs. According to the source, steel traders are also bearing losses at the moment. His TMT bar stocks have reduced from the regular level of 1,000t to the current 400t since last October.
