Indian steelmaker Rashtriya Ispat Nigam Limited (RINL), also known as Vizag steel, has raised rebar prices by Rs1,000/mt ($13.5/mt) for November deliveries, according to Davis Index sources. The company has also raised prices of other long products such as billet, rounds, structural and wire rod by Rs1,000-1,500/mt for the month.
Following this hike, rebar prices now stand at Rs40,000-40,500/mt ($540-547/mt) ex- Vizag.
In early-October, RINL had increased long steel products’ prices by Rs1,000-1,200/mt while rebar was marginally up by Rs200/mt. In mid-October, it raised prices of wire rod and rounds by Rs500/mt.
The continuous price hike is due to recovery being witnessed in the market as demand from construction, white goods and auto sectors is going up in the festive season, said industry experts.
A well-known dealer based in Vizag said though rebar demand is up, trades are still at 50-60pc of the pre-COVID-19 level. Traders are, however, restocking material anticipating good demand after Diwali festival.
RINL had earlier re-ignited its third blast furnace, which was idled in April 2020 amid the COVID-19 lockdown.
Presently, the company’s hot metal production from three blast furnaces is at 17,000-18,000mt per day and is expected to reach full capacity by November-end.
There was a minor fire mishap at the Vizag steel plant on Thursday but no one was injured. Officials also confirmed that the steel production was not affected.
Meanwhile, other primary mills such as Sail, JSPL and JSW Steel have raised long steel prices by Rs1,000-2,000/mt depending on the products earlier this month.