India’s primary steelmakers have raised rebar prices by Rs1,000-1,200/mt ($13-16/mt) for rest of December deliveries as per Davis Index sources. Since early November, primary steel producers have raised rebar prices from Rs40,000 to upto Rs50,000/mt, a hike of 25-27pc. Mills expect more hikes in the next few months.
With latest price hike, primary mills’ rebar prices are at around Rs50,500-51,000/mt ($687-694/mt) ex-Mumbai. In the past two weeks of December, almost all steelmakers raised rebar prices by around Rs4,000/mt ($54.42/mt) in three tranches.
India’s primary steel producers believe there is a strong recovery of steel consumption in the domestic market. Almost 60pc of steel is consumed in construction, real estate and infrastructure and most of the projects which were stalled during the lockdown have restarted, boosting steel demand, particularly for long products.
Various Association and India’s Road Transport and MSME Minister Nitin Gadkari raised concerns on the successive price hikes by the primary steel mills. Over the last six months, steel prices have increased almost by 50-55pc. The minister has sent a letter to India’s Prime Minister on the sudden and steep rise in steel prices and suggested a high-level discussion on the matter. If steel prices continue to spike, infrastructure projects will suffer and the government might have to bring about policy changes, warned the minister.
($1=Rs73.52)