Primary TMT Demand Rising Across Regions; Price Hike Likely Soon

Key Takeaways

• Stable Prices: Primary TMT prices across regions are steady, ranging from Rs. 50,000 to Rs. 52,000/mt.
• Growing Demand: Inquiries are increasing, signalling a potential price rise in the near future.
• Anti-Dumping Measures: The government may impose higher taxes to limit Chinese steel imports.
• Visakhapatnam Steel Concerns: Union pushes for a lasting solution, including SAIL merger and captive mines.
• Market Outlook: Prices likely to rise, driven by demand growth and fiscal quarter-end dynamics.

Primary TMT Prices

• Prices are as follows (size 12 to 32mm):

Ex-Mumbai: Rs. 51,500-52,000/mt
Ex-Delhi NCR: Rs.51,500-52,000/mt
Ex-Vizag: Rs. 50,000 - 50,500/mt

• Note - Distributors across North, West and South are stable. Above pricing is based on the same.

Primary TMT Demand & Supply

The market's demand has grown during the last week. There are forecasts that prices will rise in the coming days, and the increase in inquiries is encouraging for the steel sector. The government is taking action to reduce the entry of Chinese steel into India by imposing high taxes. This would raise the cost of steel in India. A clear picture will be available in a few days.

Primary TMT News

Visakhapatnam Steel Plant Union is pushing for permanent solution. Union leaders say the Centre’s Rs 11,440 crore revival package is inadequate for addressing VSP’s long-term issues. The Visakha Ukku Parirakshana Porata Committee (VUPPC) plans to meet lawmakers, advocating for solutions like merging with SAIL and securing captive mines.

Expert Opinion

The market's increasing demand trend appears to be a good thing. Since the distributors have a large amount of inventory, the supply and demand appear to be balanced. Given that this is the final quarter of the fiscal year, prices are steady but may soon exhibit an increasing trend.