January closed with hiked anticipation about price increase in both long and flat products. The build up for this rather unfathomable development trails to the modicum of positivism exuded by the economy in Q4 with inflation and industrial production numbers redeeming in major way.
Moreover Q4 traditionally is the time for completion of projects before the closure of Financial Year. The ensuing demand surge has led to shortage of TMT bars in the market. At the same time there is a perceptible shift in buying exclusively from the primary manufacturers for the infrastructure projects.
However flat product market situation is not so enviable as buying remains slow. However mills would be vying to consolidate the gains before the import looms.
International long and flat product prices are showing downtrend off late having lost nearly USD 30-40 per tonne. Indian mills would opt for capitalizing the market before the imports commence. Moreover with the appreciating rupees the tidings can already be seen.
Market is widely expecting a hike of INR 500 per tonne in both rebar and HRC prices in February.
Source : steelguru.com