Primary TMT Market: Rising Inquiries and Tight Supply Behind Price Increases
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Primary TMT prices have seen a notable rise across key markets due to increased demand and supply constraints. Material shortages persist, largely due to the SAIL ISP plant’s maintenance and the halted RINL production. The market anticipates additional price increases in the coming days as reliance on alternative brands grows.
Key Takeaways
- Primary TMT Prices: Prices in Mumbai, Delhi NCR, and Vizag range from Rs. 53,500 to Rs. 56,000/mt, with significant increases across regions.
- Supply Constraints: Ongoing maintenance at SAIL ISP and RINL’s production halt have strained supplies, leading to price increases in both primary and secondary markets.
- Demand Surge: Inquiry volumes have risen, but the conversion rate is low, with distributors expecting continued price growth.
- JSW Steel Agreement Terminated: The government has terminated JSW Steel's coal block deal due to non-payment, forfeiting Rs 100 crore in bid security.
- More Hikes Expected: Distributors anticipate further price hikes, while buyers negotiate amid uncertain price stability.
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
- Within a week, prices in both the primary and secondary markets have surged dramatically. As the volume of inquiries has increased in November. Due to material shortages caused by the SAIL ISP plant being under maintenance and the RINL plant not running, the distributors anticipate significant price increases in the days ahead. There is now more reliance on other brands.
Primary TMT News
- The government terminated JSW Steel's agreement for the Banai-Bhalumunda coal block due to non-payment of the required Rs 1,000-crore performance security. The Rs 100-crore bid security submitted by JSW has been forfeited as damages. JSW Steel had repeatedly sought extensions, citing difficulties in securing payments and completing a feasibility study.
Expert Opinion
- Although the market's flow of inquiries has surged, the conversion ratio has decreased. Price stability might come in a few days. The distributors are not prepared since they anticipate more price increase in the upcoming month, while the buyers are in the midst of negotiating.
Daily Market Report
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