Indian steelmaker Rasthtriya Ispat Nigam Limited (RINL), also known as Vizag steel, has raised wire rod and round steel prices by Rs500/mt ($6.81/mt) for the rest of October, according to Davis Index sources. This is the second price hike by the company in a month. Rebar prices remain unchanged.
Earlier this month, RINL had increased long steel products prices, including wire rod by Rs1,000-1,200/mt while rebar was marginally up by Rs200/mt.
Following price hike, wire rod prices now stand at Rs43,500-44,000/mt ($493.45mt) depending on the grade delivered to Karnataka region.
This hike is due to strong demand from downstream industries, that further supply to the small and medium scale sectors’ enterprise for further processing. There is also an acute shortage of high-grade wire rod due to inadequate supply from the domestic wire rod producers, a RINL dealer based in Vizag told Davis Index.
Meanwhile, domestic primary mills are unable to increase rebar prices as desired because of moderate demand from the real estate industry in last 6-7 months due to COVID-19 related restrictions. Heavy rain in most parts of South India recently has further worsened the rebar demand. However, market participants are anticipating demand to be restored after Dusherra on October 25.
RINL has re-ignited its third blast furnace, which was idled in April 2020 amid the COVID-19 lockdown.