Primary TMT Market Strong, Distributors Anticipate Further Price Increases

Primary TMT Prices

• Prices are as follows (size 12 to 32 mm): Ex-Mumbai: Rs. 54,500-55,000/ton Ex-Delhi NCR: Rs. 54,500-55,000/ton Ex-Vizag: Rs. 52,500 - 53,000/ton
• Note - Distributors across north, west and south have increased prices. Above pricing is based on the same.

Primary TMT Demand & Supply

• It was thought that the market would show signs of increasing demand, but this hasn't happened. The distributors expect an extra further price increase. In a growing market, distributors are hoarding goods in expectation of increased income. It will become clear how much it will cost in two or three days.

Primary TMT News

• Steelmakers are expected to see sharp profit declines in Q2, influenced by weak steel prices, global competition, and sluggish domestic demand. While there has been some respite in input costs – of coking coal and iron ore – it will not be enough to offset the impact of the weak pricing, they said.
• The net profit of four key steelmakers – Tata Steel, JSW Steel, Steel Authority of India, and Jindal Steel and Power – are seen plunging between 40-100% on year. Some analysts also see SAIL turning loss-making for the quarter.

Key Challenges

• Market instability: Frequent price fluctuations and a lack of buyer confidence are creating an uncertain market environment.
• Pressure from imports: Increased imports, particularly from China, are undercutting domestic prices and putting pressure on local manufacturers.
• Weak demand: Steel demand remains subdued, particularly in construction, affecting both pricing and profitability for steelmakers.

Expert Opinion on Primary TMT Market

• The frequency of price fluctuations suggests that the market is unstable. Prices have been increasing over the past two to three weeks. The buyers are reluctant to accept price hikes and aren't placing orders because they anticipate price reductions in the future. Although there are more enquiries, orders are not being converted because the market has not yet shown price acceptability. The distributors anticipate further price increases.