Will Indian Mills Hike Long Steel Prices in Apr'19 ?

As per trade sources report to the SteelMint, state owned & large mills in India who are making steel through blast furnace route are planning to raise their prices for April deliveries by approximately INR 500-1,000/MT (USD 7-14) across major markets

The key factors behind expected price hike stated- low inventories, better response in semis exports as well as improved domestic demand with the mills.

It should be noted that, the large mills have been receiving better response in recent export tenders and the tenders have been settled at decent prices. According to data maintained with us, tenders for nearly 194,200 MT qty of billet/bloom for export was floated during Jan-Mar'19. Out of this, 159,400 MT material was confirmed to have concluded.

Consumption rate of finish long steels (non –alloy) have also increased in India by around 2% to 38.79 MnT during Apr'18-Feb'19 against same time frame in previous year at 38.19 MnT (Apr'17-Feb'18).

In context to price gap in rebar between large & medium mills, it also appropriate and currently evaluated at INR 4,000-5,000/MT (USD 58-72), as per SteelMint assessment in major locations. This may also influence large mills to keep prices strong.

Further it is being learned from market sources that Tata Steel, which has one the largest integrated steel plant in Jamshedpur has planned to put his mills on regular maintenance during April, this could be reduce supply in merchant market and might boost demand with other large mills.

The current trade reference rebar prices reported at around INR 40,500-41,000/MT Ex-Mumbai & INR 41,000-41,500/MT Ex-Chennai. The prices are for 12mm size & excluding 18% GST.