India's Vizag Steel Reduces Prices on Few Products for Rest of November-Sources

State owned - Vizag Steel (RINL), has decreased its rebar and semis prices by INR 500-1,000/MT (USD 7-14) for rest of Nov'18. The revised prices are applicable from today, as per sources.

The company has decreased prices for rebar by INR 500/MT for 20-36mm, while it keep prices unchanged for other sizes. Also, it reduced in semis ie billet prices by INR 1,000/MT and kept the prices unchanged for other long products.

Currently, rebar offers through the large mills stood at close to INR 43,300-43,800/MT ex-Chennai, for 12mm & excluding 18% GST.

As per the market participants, the current price reduced by the Vizag Steel attributes due to low buying interest from the end-users and competitive offers from other large steel mills. In addition, there is assembly election in 5 states including Telangana to be held in the Nov and Dec'18 which already started in Chhattisgarh will keep the government new projects on hold till then.

Vizag Steel (RINL) is a state owned steel maker under the Ministry of Steel and one of the largest long steel producers in India. The company had reported saleable steel output at around 4.5 MnT in last fiscal 2017- 18 and targeting to achieve at 5.5 MnT in the current fiscal year. The company is also targeting to achieve the production capacity near to 6 MnT in FY 18-19.

Few other large steel producers are heard to have offers discount recently by INR 500/MT in rebar in order to push sales.