Indian steelmaker Rashtriya Ispat Nigam Limited (RINL) has raised rebar coil prices for small sizes of 8mm by Rs1,500/mt ($20.38/mt), 10mm by Rs1,000/mt ($13.58/mt) and 8mm Rs500/mt ($6.78/mt) for rest of December deliveries, company officials confirmed with Davis Index.
The state-owned company has raised prices of semis products by Rs1,000/mt. This the fourth price hike by the company this month. New prices will be effective December 19.
Since early-Dec, RINL, also known as Vizag Steel, have raised rebar prices by 15-17pc and following this hike, its rebar prices are at around Rs50,500/mt ($686.14/mt) ex-Chennai, according to a dealer based in Chennai.
Dealers also shared that RINL rebar prices are quite competitive compared to other large producers.
Another important factor for increasing prices is the sharp hike in iron ore prices in the domestic market. Unlike other primary producers, RINL does not have any captive iron ore mines and depends on the market to source it.
NMDC iron ore prices have gone up by 112-113pc in lumps and fines since June-end, causing a spike in the cost of steel production.
RINL’s daily average hot metal production from its three blast furnaces is around 17,500mt.
($1=Rs73.67)