Primary TMT Market Expecting Upward Trend Amid Improved Demand

Key Takeaways

• Stable Prices Across Regions: Primary TMT prices are steady, with variations between Rs. 51,500–52,500/mt across key cities like Mumbai, Delhi NCR, and Vizag.
• Improved Demand: December demand outperformed November, driven by higher inquiries and improved inquiry-to-conversion ratios.
• Government Safeguard Duty: A potential 25% import duty on subsidized steel imports may create a fairer competitive landscape for Indian manufacturers.
• Inventory Levels: Distributors hold ample stock, ensuring steady supply in the market.
• Positive Market Sentiment: The upward trend in demand and stable pricing has contributed to optimistic market sentiment.

Primary TMT Prices

• Prices are as follows (size 12 to 32mm): Ex-Mumbai: Rs. 52,000-52,500/mt Ex-Delhi NCR: Rs.52,000-52,500/mt Ex-Vizag: Rs. 51,500–52,000/mt
• Note - Distributors across North, West and South have decreased prices. Above pricing is based on the same.

Primary TMT Demand & Supply

• The demand was higher in December than it was in November. Rates at the primary mills are stable, and the number of inquiries has gone up. The inquiry-to-conversion ratio has increased. The trend seems to be improving, therefore the next few months will be better.

Primary TMT News

• The Indian government is considering a safeguard duty of up to 25% on steel imports to counter low-cost imports, especially from FTA countries, which account for over 60% of imports and enjoy zero-duty privileges.
• Industry leaders cite unfair competition from subsidized exports by China, Japan, Korea, and Vietnam, urging measures for fair competition and growth. The DGTR is investigating the issue, with no final decision yet. Steel Minister HD Kumaraswamy assured that the process is ongoing.

Expert Opinion

As the trend suggests, the market is showing an upward trend. The market is in a positive mood. Prices on the market are stable. The distributors have a lot of inventory in hand.