Indian integrated steel mills led by Tata Steel and Jindal Steel and Power Limited (JSPL) have started increasing base prices for rebar, anticipating a demand surge will be triggered by the significant increase in infrastructure project funding in the national budget, industry sources said on Friday, February 4.
Sources said that Tata Steel has increased rebar base prices by INR 2,000/mt ($27/mt), while JSPL and state-run Steel Authority of India Limited (SAIL) have effected a hike of INR 1,500/mt ($20/mt), for February bookings.
Sources at state-run steel producer Rashrtriya Ispat Nigam Limited (RINL) said that the rebar price base price will be increased in view of the rise in the cost of iron ore, but that the size of the increase will be announced next week.
Following the base price hikes by mills, effective prices for February now range at INR 60,700-62,000/mt ($810-828/mt) ex-works.
Trade circles said that mills are confident of pushing through price increases after a month-long consolidation of trade prices at higher levels. Furthermore, producers are betting on a sharp rebound in demand following the government’s forecast in the national budget that the economy’s annual spending on infrastructure will surge to $529 billion supported by a 35 percent increase in capital outlay for government-backed projects.
