Limited Demand Weighs on TMT Market, Prices Decline Further
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Primary TMT prices fell by Rs 1,000/ton across major locations. Monsoon impacts demand and ample inventory prevents supply issues despite ongoing maintenance. Demand remains low to stagnant, and mills may announce more price reductions.
Price
- The prices of primary TMT have dropped by Rs 1,000/ton in major locations, as listed below:
- Ex-Mumbai: Rs 51,000–51,500/ton
- Ex-Delhi NCR: Rs 51,000–51,500/ton
- Ex-Vizag: Rs 50,500–51,500/ton
- The prices are for 12 to 32mm sizes, Grade Fe 550/550D and exclude trade discounts, as well as GST.
- Distributors across the North, West, and South have observed reduced prices from all primary mills. The above pricing reflects this trend.
Demand and Supply
- Due to the ongoing monsoon, there is less demand in the market compared to July. The JSL and ESL Angul facilities are under maintenance, but distributors are not experiencing supply issues, as they have ample inventory and are eager to negotiate better deals.
News
- The Indian steel industry faces a crucial turning point in addressing both industrial competitiveness and sustainability amid rising carbon emissions. Ashwini Kumar, Economic Advisor to the Union Ministry of Steel, emphasized the need for a green transition to reduce the current CO2 emissions of 2.5 tonnes per tonne of steel. The Carbon Border Adjustment Mechanism (CBAM) may impose additional taxes of 20–35% on the sector, potentially affecting GDP by 0.5%. Industry leaders advocate for strategic adaptation to new EU regulations, emphasizing the integration of sustainability into business operations to maintain global competitiveness.
Expert Opinion
- Due to the monsoon, demand remains stagnant as the first week of August concludes. With the long weekend from August 15th, Independence Day, approaching, demand is expected to wane further. Mills are anticipated to pursue more price reductions.
Daily Market Report
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Structural steel prices have increased, with SAIL increasing by Rs 2000/ton and other major players following suit. The scarcity of RINL material and shutdowns are impacting supply, while secondary mills face rising costs due to growing TMT demand. However, government intervention is being planned to address RINL's financial woes.
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TMT Prices Stable, Demand Surge Expected
Primary TMT prices remained stable in the last week of August, with Mumbai and Delhi NCR prices at Rs. 50,500-51,000/ton and Vizag at Rs. 49,000-49,500/ton. Distributors anticipate increased demand as the monsoon ends, potentially leading to price hikes in September.
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