At last the suspense over price changes in long product was broken with INR 500 -1000 per tonne increase in TMT price by some steel major.
Some steel mills have increased the levels to fine tune with the increased cost and anticipation of buying picking up once Pitra Paksha is over on 4th October. Traditionally post Pitra Paksha Indian indulges in construction as it is considered auspicious. However this year the economic headwinds have taken a toll of market confidence and buying with credit remaining sparse.
Secondary pipe fitting steel manufacturers have been hesitant in pushing price hikes despite sponge iron levels remaining firm owing to scrap scarcity after INR depreciation. Re-rollers have decided to content with off take without unduly being bothered about margins which are yet high with a gap of nearly INR 6500 per tonne from pencil ingot to TMT bars. In Hyderabad and Mumbai the buying has been moderate. However at most other locations it has been weak.
The gap between price of major and secondary mills have narrowed over the year with furnace owners maintaining their margins giving re-rollers very little room for correction. Major steel mills have taken this as a cue to push price to adjust for the gap.