The Steel Authority of India Limited (Sail), on November 26, raised rebar prices by Rs1,500/mt ($20.3/mt) and flat by Rs750/mt ($10.15/mt) for rest of November deliveries, according to Davis Index sources. On November 19, the company raised prices in finished long and flat products by the same amount.
Earlier this month, Sail had raised long prices by Rs800-1,000/mt and flat by Rs1250/mt.
Following this hike, rebar prices now stand at Rs44,000-44,500/mt ex- Mumbai and HRC at around Rs45,000/mt ex-Mumbai.
The third price hike this month is attributed due to sharp hike in iron ore prices and imported scrap prices since the last few months due to demand- supply gap.
Since May 2020, National Mineral Development Corporation (NMDC) which is a state-owned company like Sail, had raised iron ore prices by 78pc to 84pc — including two price hikes in November. The iron ore lumps prices has increased from Rs2,250/mt to Rs4,000/mt and fines from Rs1,960/mt to Rs3,610/mt since then while imported scrap prices in India surged by $40-45/mt so far this month.
Lesser availability of finished steel and healthy order book reported by the company in all big infra projects across India has also contributed to the price hike.
A similar price revision by secondary producers in the domestic market has added to it. In Mumbai, rebar prices rose by about Rs3,000/mt so far this month.