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Steel producers cut prices under pressure from cheaper import-不銹鋼展-2015第十六屆廣州國(guó)際不銹鋼工業(yè)展-效果最好的不銹鋼展會(huì)-The 16th China(Guangzhou)Int'l Stainless Steel Industry Exhibition
1/19/2015 不銹鋼展-不銹鋼展會(huì)-效果最好的不銹鋼展會(huì)- Stainless Steel Exhibition |
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Major steel producers have
reduced prices of the finished product by three-four per cent for the month of
January as metal prices across the world continued a downward trend. Domestic
producers have announced price reduction of Rs 1,000 a tonne to Rs 1,500 a tonne
for the month.
The move is aimed at countering cheaper imports from China
and Russia and to arrest demand slump in the domestic market, industry sources
said. While some producers have announced a cut in prices, others are offering
discounts in different regions.
Steel Authority of India (SAIL),
Rashtriya Ispat Nigam Ltd (RINL), and Jindal Steel and Power Limited have
announced a reduction of Rs 1,000 to Rs 1,500 a tonne for long products, used in
construction.
Rebar producers have announced a price cut between Rs 800
and Rs 1,500 a tonne, industry sources revealed.
RINL and SAIL are
selling wire rod products at Rs 40,500 and Rs 39,000 a tonne, a reduction of
three-four per cent over December. Wire rod products are mainly used in
construction.
Tata Steel and JSW Steel have not yet announced a cut in prices but are offering discounts. They
cannot afford to stay away from either reducing prices or offering discounts,
analysts said. Nilachal Ispat has announced a discount of Rs 500 a tonne.
Russian material is available at $470 a tonne on a CIF (cost, insurance and
freight) basis, while Chinese material is imported at $475 a tonne. Domestic
steel consumption showed marginal growth of 1.3 per cent during April-November,
at 48.62 million tonnes, compared to 48 million tonnes in the corresponding
period last year.
Whereas, import rose 49 per cent to 5.56 million tonnes
during the period compared to 3.72 million tonnes earlier, according to
Seshagiri Rao, joint managing director and group chief financial officer, JSW
Steel.
“The industry is overburdened in the country as it has to pay a
very high level of logistics and freight costs to Indian Railways, of 17.5 per
cent. In addition, we have to pay decongestion charges, imposed in November by
the railways. Compared to China, we have a very high level of operational costs.
As a result, Indian producers are no longer competitive,” Rao
said.
Taking advantage of depreciation in rouble prices, Russian steel
producers have increased shipments to India, analysts said. “The pressure will
continue on prices. Overall, the prices will remain at the current level during
the rest of the fourth quarter due to import pressure from china and russia,”
said Ritesh Shah, lead analyst – India Materials, Espirito Santo Securities.
不銹鋼展-2015第十六屆廣州國(guó)際不銹鋼工業(yè)展-效果最好的不銹鋼展會(huì)-The 16th China(Guangzhou)Int''l Stainless Steel Industry Exhibition
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