India's Vizag Steel Increases Long Steel Price for Feb'19

Vizag Steel (RINL) under the Ministry of Steel has increased price of long steel products for Feb'19 deliveries, as per company's price circular.

State owned RINL (Vizag Steel) and one of the largest long steel producers in India has increased prices today in few of finished steel products for Feb'19. The producer has raised prices by INR 500/MT (USD 7) in Rebar & Wire rod (for above to 16mm (large sizes) . Also the company hike offers for Bloom in same proportion with immediate effect.

Sources assuming that the prime reason behind the hike in rebar prices by the company is sharp surge in prices of mid sized mills, which have increased in a month by INR 2,500-3,000/MT ($ 35-42) in Raipur, Chennai, Delhi/NCR & in Mumbai.

Last week, JSW Steel has announced 2nd price hike during Feb'18 in rebar by about INR 1,000/MT. In addition the other large scale producers (SAIL, Tata Steel & JSPL) have already hike offers in long steel products by INR 500-1,000/MT towards the begininng of Feb'19.

Following the significant rise, rebar prices will be offered by large players stood at close to about INR 40,500-41,000/MT ex-Chennai for the retail segment, 12 mm, ex-works & excluding 18% GST.

Among all regions in India, RINL has a significant presence in southern region in terms of rebar sales. In southern region, Bangalore, Chennai, Kochi, and Coimbatore is the preferred market.

Vizag Steel (RINL) is a state owned steel maker under the Ministry of Steel has an annual installed capacity of about 7.3 MnT p.a. in which the company had reported saleable steel output of around 4.5 MnT in last fiscal 2017-18.