Indian steelmaker Rashtriya Ispat Nigam Limited (RINL) has raised rebar prices by Rs1,000/mt ($13.58/mt) and wire rod by Rs500/mt ($6.79/mt) for rest of December deliveries, company official confirmed with Davis Index. New prices will be effective from December 28. This the fifth price hike by the company this month.
Since early-Dec, RINL, also known as Vizag Steel, has raised rebar prices by Rs8,000-9,000/mt ($108-122/mt) depending on the sizes, including Monday’s price hike.
Its rebar prices are now priced around Rs50,500-51,000/mt ($686-693/mt) ex-Vizag, according to a dealer based in Vizag. Dealers also shared that rebar demand is moderate at increased prices and it’s uncertain whether it will sustain or not.
Another important factor for successive price hike is due to sharp rise in iron ore prices in the domestic market. India’s state-owned company, National Mineral Development Corporation (NMDC), has already raised iron ore prices twice this month, by Rs1,000-1,200/mt ($14-16/mt).
Another Chennai-based dealer shared that demand has picked up well as construction and real estate companies are procuring material in advance for the requirements Q4 FY21 on anticipation of further price hike.
($1=Rs73.6)