Primary TMT Market Sentiment Slows as Trends Shift
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Primary TMT prices remained stable across major regions like Mumbai, Delhi NCR, and Vizag despite stagnant demand and declining inquiry volumes in November. Supply remains sufficient, even with maintenance activities at SAIL ISP. Customers remain hesitant to commit to purchases, anticipating further price reductions.
Industry Highlights
- Pricing Outlook: Distributors across key regions have adjusted pricing, but market hesitancy persists, creating potential volatility in the weeks ahead.
- Demand and Supply: Inquiry traffic has declined, signalling stagnant demand in November. SAIL ISP maintenance had no significant impact on supply, keeping supply-demand balanced.
- Global Steel Production Trends: China produced 81.9 Mmt of steel in October, up 3.5% YoY, driven by anticipated government measures. Other nations experienced mixed production trends.
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 - 53,500/mt
- Note - Distributors across North, West and South have increased prices. Above pricing is based on the same.
Primary TMT Demand & Supply
- In November, demand appeared to be stagnant as the inquiry flow indicated a downward trend. The SAIL ISP facility was undergoing maintenance, but there was no shortage of material, and supply and demand were balanced. As the month of November draws to a close, primary and secondary prices are down.
Primary TMT News
- China's steel mills ramped up production by 2.8 (million metric tons (Mmt) year-on-year in October 2024, contributing to the 151.2 Mmt of global crude steel output, a 0.4% rise from October 2023. China accounted for 63% of the global September-to-October increase, producing 81.9 Mmt (+3.5% YoY, +6.2% MoM), driven by anticipated government stimulus and export demands. While nations like Brazil (+16.2%), Germany (+14.7%), and India (+1.7%) also saw gains, others like South Korea (-18.3%) and Russia (-15.2%) reported declines, reflecting mixed global trends in steel production.
Expert Opinion
- The suppliers have enough material available, and the customers are prepared to engage in additional negotiations. Contrary to what the inquiry traffic indicates, market sentiment is not favourable. Customers are still hesitant to purchase despite the price reductions, and they anticipate more price cuts this week. When compared to the flow of inquiries, the conversion ratio is lower.
Daily Market Report
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