Primary TMT Market Insights: Price Hikes and Potential Shortages Ahead
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Primary TMT prices have seen an increase this month due to heightened demand and limited supply from major manufacturers. The market anticipates further price increases due to scarcity as key plants are either non-operational or under maintenance. Meanwhile, Tata Steel's CEO indicates that current low steel prices could impact long-term capacity expansion plans.
Key Highlights
- Price Rise: Primary TMT prices have climbed as distributors anticipate further hikes due to limited supply.
- Increased Demand: Enquiry flow has surged in November compared to October, showing stronger market interest.
- Supply Constraints: Limited production from RINL and SAIL’s ISP plant is creating dependence on other brands, pressuring prices.
- Tata Steel Expansion Challenges: Tata Steel CEO highlights low steel prices as a challenge to expansion, noting the need for higher pricing to support future growth.
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 Analysis
- The primary and secondary market have increased prices significantly with in a week. Demand in the market has increased as the enquiry flow has gone up in the month of November as compared to October. The distributors are expecting further price increase in coming days because of scarcity of material as the RINL plant is not operating & SAIL ISP plant is under maintenance. The dependency has increased on other brands.
Primary TMT Latest News
- Tata Steel CEO T.V. Narendran highlighted that current low steel prices may hinder Indian steelmakers' major capacity expansion plans. Tata aims for 40mt capacity by 2030 but faces challenges with prices around $450-500 per mt, pressured by cheap Chinese imports. Narendran suggested that $550-650 per mt would be ideal for expansion feasibility. Despite these challenges, Tata is progressing on preparations for expanding NINL’s capacity and further projects at Kalinganagar and Angul, conditional on improved cash flows.
Expert Opinion
- The enquiry flow in the market has increased, but conversion ratio is less. Price stability may come in a few days. The buyers are in a mood of negotiation, but distributors are not ready as they are expecting further price increases in the coming month.
Daily Market Report
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