In March the cost of construction is set to rise further as the primary construction material manufacturers are planning a price hike. Close on the heels of cement manufacturers increasing the prices, rebar producers too are set to hike the prices.
According to our sources, Indian primary mills are looking to increase rebar prices for March 2021 deliveries by Rs 1,000-1,500/ton. With high exports, rising scrap and billet prices and narrowed gap between mid-sized and primary players price spread stage is set for the price hike.
Meanwhile, coking coal prices have gone down by 11% in the Indian domestic market. On the other hand, Billet, rebar and HRC prices have increased by 3%,2% and 0.5% respectively. Iron ore prices too have remained unchanged.
China steel markets have also witnessed strong trend post holidays as Iron ore, HRC, Billet, HRC and Rebar prices have increased by 3%, 1%, 3%, 4% and 4% respectively while pet coke prices have decreased by 3%. Indian scrap prices have seen increase of US$20/ton on w-o-w basis to US$465-475/ton CFR basis.
It may be recalled here that the Minister of Steel, Mr Dharmendra Pradhan had told in the Rajya Sabha that increase in steel prices in recent months is due to the demand-supply mismatch following only partial resumption in economic activities across the globe, especially in Europe, Japan and South Korea following lock downs due to Covid-19 pandemic. He also had said that the prevailing high global steel prices have also influenced domestic steel prices.
Interestingly, Union Road Transport Minister Nitin Gadkari, in January, had alleged that big players in the steel and cement industry were indulging in cartelisation to jack-up prices, a view echoed by the people in real estate sector too.