Primary TMT Market Faces Declining Demand, Price Reductions Expected

Key Takeaways

• Price Reductions: Primary TMT prices across regions have decreased, with Mumbai, Delhi, and Vizag showing lower rates.
• Demand Slump: Inquiries for TMT are scarce, indicating weak demand and a decline in market sentiment.
• Global Steel Production: Worldsteel data shows a nearly 3.5% drop in November global steel output, impacting market prices.
• No Material Shortage: Availability of TMT material is not an issue, but declining demand has led to price reductions.
• Price Forecast: Further reductions in TMT prices are expected in the coming weeks, with a clearer market outlook by January.

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 have decreased prices. Above pricing is based on the same.

Primary TMT Demand & Supply

Given the continual sluggish inquiries, the market's demand appears to be dire. Some diameter in SAIL plant is scarce due to recent maintenance at ISP plant. Demand and supply follow a smooth trend. The prices will continue to decline, as the current trend indicates. In the upcoming months, the full picture will be revealed.

Primary TMT News

• Worldsteel data shows global steel output in November fell nearly 3.5% month-over-month, reaching 146.8 million mt, a 0.8% increase from November 2023.
• China’s output rose by 2.5% year-over-year but dropped by 4.3% compared to October. Other major producers, including Russia, Brazil, India, and the U.S., also saw month-over-month reductions in output.
• Global production dropped 1.4% from January to November 2024 compared to 2023. Turkey’s steel sector grew by 11%, while Russia saw the largest decline, down 7%.

Expert Opinion

There is hardly any inquiry flow. And since demand is declining, market sentiment is not positive. Material availability is not an issue. So, more price reductions are planned over the upcoming weeks. In January, the whole situation will become clear.