Indian TMT bar prices down
2015-09-17 09:19:59 [Print]
BEIJING (Asian Metal) 17 Sep 15 - The price of TMT bar in India is on a downward trend influenced by the bad market performance. The current ex-factory price of TMT bar Fe500 Φ12mm is INR27,000-28,000/t (USD407-422/t), down by INR500/t (USD8/t) compared with a month ago. Insiders predict that it is difficult for the price to rebound in the near future.
A TMT bar trader in Chhattisgarh states that the current ex-factory price of TMT bar Fe500 Φ12mm is INR27,000/t (USD407/t), falling by INR500/t (USD8/t) compared with that of a month ago.
According to the source, customers can get an offer of USD280/t FOB China for TMT bar from Chinese suppliers. Even though India has the intention to increase import tax for TMT bar, there is no policy coming into effect. The source attributes the weak demand from customers to the brunt of imported materials. “I learnt that the consumption of steel increased by 6-7% in Q2 of this year, but the import volume went up by around 54% during this time, both on a year-on-year basis,” he says, adding that producers have no choices but to cut prices to attract orders. He has no confidence in a price rebound in the near future.
A TMT bar producer in Kolkata says that the current ex-factory price of Fe500 Φ12mm is INR28,000/t (USD422/t), falling by INR500/t (USD8/t) compared with that of a month ago. His monthly production for TMT bar is 70,000 tons.
Noted by the source, steel mills increased ex-factory prices of TMT bar by around INR500/t (USD8/t) in early September due to higher production cost brought by the depreciation of INR. However, prices could hardly stand firm and began to fall last week as the demand from downstream consumers shrank. “It is said that in the past quarter, the average price of steel products in India went down by around 17%,” he says, complaining that it is hard to get profit from the steel trading business at present. He reveals that it is possible that he will cut some production if the demand from downstream continues to remain weak in the near future.
A TMT bar trader in Chhattisgarh states that the current ex-factory price of TMT bar Fe500 Φ12mm is INR27,000/t (USD407/t), falling by INR500/t (USD8/t) compared with that of a month ago.
According to the source, customers can get an offer of USD280/t FOB China for TMT bar from Chinese suppliers. Even though India has the intention to increase import tax for TMT bar, there is no policy coming into effect. The source attributes the weak demand from customers to the brunt of imported materials. “I learnt that the consumption of steel increased by 6-7% in Q2 of this year, but the import volume went up by around 54% during this time, both on a year-on-year basis,” he says, adding that producers have no choices but to cut prices to attract orders. He has no confidence in a price rebound in the near future.
A TMT bar producer in Kolkata says that the current ex-factory price of Fe500 Φ12mm is INR28,000/t (USD422/t), falling by INR500/t (USD8/t) compared with that of a month ago. His monthly production for TMT bar is 70,000 tons.
Noted by the source, steel mills increased ex-factory prices of TMT bar by around INR500/t (USD8/t) in early September due to higher production cost brought by the depreciation of INR. However, prices could hardly stand firm and began to fall last week as the demand from downstream consumers shrank. “It is said that in the past quarter, the average price of steel products in India went down by around 17%,” he says, complaining that it is hard to get profit from the steel trading business at present. He reveals that it is possible that he will cut some production if the demand from downstream continues to remain weak in the near future.
