Primary TMT Market Update: Demand Spike Expected Amid Material Shortages
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Primary TMT prices have risen recently across major markets as demand increases and distributors expect further shortages in the coming days. While stocks remain stable for now, maintenance at the SAIL plant may lead to limited supplies, pushing prices up further. October saw Indian steel exports grow while imports.
Key Insights
- TMT Prices: Prices range from Rs. 53,500 to Rs. 56,000/mt in Mumbai, Delhi NCR, and Vizag, reflecting an upward trend across regions.
- Higher Demand Expected: Demand is expected to increase this week as customers adjust to current pricing levels, though anticipated shortages may drive further price hikes.
- Supply Stability Now: While stock levels are stable for now, limited availability is expected in the coming days due to maintenance at key facilities.
- Trade Trends: Indian steel exports rose 11% month-on-month in October, while imports fell by 4% amid stricter import rules.
- Potential Price Increases: Distributors forecast a potential price increase driven by higher demand and supply limitations.
Primary TMT Prices
- Prices are as follows: 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
- Since customers have begun to accept the pricing and price stability, the distributors anticipate a spike in demand this week. The wholesalers have stock, so there is no shortage of material, even though the SAIL facility is undergoing maintenance. However, they anticipate a shortage in the next several days, which might result in more price increases.
Primary TMT News
- Indian steel exports increased by 11% in October from the previous month to 0.44 million mt, while imports fell 4% to 0.98 million mt due to tighter import norms, marking the first monthly import decline this fiscal year. Imports remain high year-on-year, up 34%, while exports grew by 51%. For the April-October period, India’s steel imports stood at 5.72 million mt, surpassing exports by 2.97 million mt.
Expert Opinion
- Demand increased last week, and it is anticipated to increase even more in the days ahead. In two to three days, a clear picture might be available. Demand and supply may be hampered by the material shortage, and ex-plant prices in the main segment might rise even more.
Daily Market Report
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