Primary TMT Market Prepares for Price Hikes and Reduced Holiday Demand
Primary TMT prices have seen increases in North, West, and South India. A slow demand pattern is expected as the holiday season nears, coupled with material shortages caused by maintenance at SAIL mills and distributor reliance on wagons for transportation. Distributors anticipate further price hikes in November.
Industry Insights
- Price Update: Primary TMT prices are currently Rs. 54,500-55,000/mt (Mumbai, Delhi NCR), Rs. 52,500-53,000/mt (Vizag).
- Demand & Supply: Holiday season slowing demand; SAIL mill maintenance and wagon-based supply distribution causing material shortages.
- Policy News: FICO requests GST reduction from 18% to 12% on iron and steel to ease tax burdens on manufacturers.
- Price Hike Expected: Distributors foresee continued price hikes in November as demand and supply disruptions persist.
Primary TMT Prices
- Prices are as follows (size 12 to 32mm): Ex-Mumbai: Rs. 54,500-55,000/mt Ex-Delhi NCR: Rs. 54,500-55,000/mt Ex-Vizag: Rs. 52,500 - 53,000/mt
- Note - Distributors across North, West and South have increased prices. Above pricing is based on the same.
Primary TMT Demand & Supply Dynamics
- The market appears stable. It appears that demand is slowing down as the holiday week approaches. The distributors are using wagons to transfer the supplies, and the SAIL mill is undergoing maintenance, therefore there is a material scarcity.
Primary TMT Latest News
- The Federation of Industrial and Commercial Organizations (FICO) has requested the Government of India to reduce GST on iron and steel from 18% to 12%, sending a memorandum to the Steel Ministry and GST Council. FICO President Gurmeet Singh Kular, alongside other representatives, highlighted the 6% tax difference between raw materials (18%) and bicycle parts (12%), leading to refund challenges for manufacturers.
Expert Opinion
- The distributors are currently dealing with a shortage of materials as a result of the disruption of supply and demand patterns caused by the material allocation through wagons. The holiday season has seen a decrease in inquiries. The distributors expect more price rises in the month of November.