Primary TMT Market Holds Steady Amid Rising Inquiries
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Primary TMT prices are stable across major regions as distributors maintain adequate inventory. While inquiries have increased, conversion rates remain lower, indicating cautious buyer behaviour. Distributors’ willingness to negotiate suggests subdued market activity.
Key Insights
- Inquiries are rising, but conversion rates remain low.
- Distributors, with adequate stock, are now open to price negotiations.
- China’s steel production surged by 6.2% in October, signaling a rebound.
- Despite initial expectations of rising demand and price hikes, market conditions have remained steady.
Primary TMT Prices
- Prices are as follows (size 12 to 32mm): Ex-Mumbai: Rs. 55,500-56,000/mt Ex-Delhi NCR: Rs. 55,500-56,000/mt Ex-Vizag: Rs. 53,500 - 54,000/mt
- Note - Distributors across North, West and South have increased prices. Above pricing is based on the same.
Primary TMT Demand & Supply
- As the second week comes to a close, the demand and conversion ratios seem to be stable. The conversion ratio is less than the flow of inquiries, despite the fact that the flow of inquiries has increased. Although distributors are willing to discuss prices, the buyer has not yet agreed to these terms. The pattern of supply and demand seems constant, since the distributors have enough inventory.
Primary TMT News
- China's steel production increased by 6.2% month-on-month in October 2024 to 81.88 million mt, ending a four-month decline. Year-to-date (January-October), output fell 3% year-on-year to 850.73 million mt.
- In 2023, steel production rose 0.6% to 1.019 billion mt, with exports up 36.2% to 90.3 million mt and imports down 27.6% to 7.64 million mt. Iron ore imports grew 6.6% to 1.179 billion mt.
Expert Opinion
- It seems that supply and demand are steady. The distributors believed that demand would rise and were expecting price hikes from the primary mills as a result of material scarcity. Demand has been flat for the last two weeks, though, and the pattern has not changed. Consequently, the distributors are eager to engage in negotiations, something they weren't ready to do earlier this month.
Daily Market Report
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