Government Projects Drive Demand Despite Falling Primary TMT Prices

Key Insights

Primary TMT Prices Fall: SAIL and other distributors in North, West, and South have decreased prices, balancing supply and demand.

Demand Outlook: Queries and demand patterns after early December will dictate the market's direction.

Policy Concerns: Exporters oppose safeguard duties, citing impacts on steel prices and infrastructure projects.

Expert Insights: Steel demand is strong, but prices may drop further based on upcoming market activity.

Primary TMT Prices

• Prices are as follows :
  Ex-Mumbai: Rs. 53,000-53,500/mt
  Ex-Delhi NCR: Rs.53,000-53,500/mt
  Ex-Vizag: Rs. 52,500 - 53,000/mt 
• Note - Distributors across North, West and South have decreased prices. Above pricing is based on the same.

Primary TMT Demand & Supply

Since the beginning of the month, prices have been falling. As distributors are eager to haggle over prices, the volume of queries will have a significant impact on the market's future course. Distributors now have a significant amount of inventory, suggesting that supply and demand are in balance. After the first week of December, a more comprehensive picture of total demand is expected to become apparent.

Primary TMT News

Engineering exporters have warned that imposing a safeguard duty on steel could raise domestic prices by 20-25%, making exports uncompetitive.

Steelmakers, citing cheap imports from ASEAN nations under free trade agreements, are pushing for protective measures. However, EEPC India Chairman Pankaj Chadha countered, stating the duty is unjustified as it would disproportionately affect the user industry and hurt government infrastructure projects, which are major steel buyers.

Expert Opinion

Due to government infrastructure projects, the current demand for steel is still strong and is predicted to expand at a rate of about 10%. Negotiations in the market indicate that steel prices can drop much more than they did in November. Steel Authority of India Limited (SAIL), like all other major manufacturers, has already reduced its prices. In the upcoming weeks, the market will either see an upward trend or a further decline in prices, depending on the demand patterns and inquiries that follow.