Primary TMT Market Update: Prices Drop Further Amid Flat Demand
Key Takeaways
- Prices Decline Again: Primary TMT prices dropped further across key markets, led by sluggish demand and regional distributor cuts.
- Demand Holds Steady: Customer interest saw a minor uptick, but weekly enquiry volume stayed mostly flat.
- Suppliers Stay Ready: Distributors continue to maintain sufficient stock, avoiding any disruptions in availability.
- Manufacturers Get Aggressive: Competitive pricing strategies intensify as producers react to ongoing demand weakness.
- Industry Moves Forward: Rathi Steel earns BIS nod, while Jairaj Ispat gears up for expansion in Andhra Pradesh.
Primary TMT Prices
- Prices are as follows (size 12 to 32mm):
- Ex-Mumbai: Rs. 56,750- 57,000/MT
- Ex-Delhi NCR: Rs.57,000 - 57,500/MT
- Ex-Vizag: Rs. 53,500- 54,000/MT
- Note - Distributors across North, West and South have decreased the prices. Above pricing is based on the same.
Primary TMT Demand & Supply
In recent days, there has been a modest uptick in customer needs, but overall inquiry levels for the last week has stayed mostly unchanged. This indicates that market demand is relatively steady, with no clear signs of growth or decline. Consistent with wider market conditions, prices have reduced further, reflecting ongoing softness in the sector. On the supply side, suppliers are proactively addressing the muted demand by adopting more competitive strategies. At the same time, distributors continue to hold sufficient stock, ensuring stable material availability and avoiding any supply disruptions.
Primary TMT News
Jairaj Ispat Limited’s Founder and MD, SK Goenka, along with his leadership team, met Andhra Pradesh Chief Minister N. Chandrababu Naidu to discuss steel industry opportunities and the upcoming launch of their advanced manufacturing unit in Kurnool, reaffirming the company’s commitment to the state’s industrial and employment growth. Meanwhile, Rathi Steel and Power Limited’s shares surged 7% after it received a BIS license to use the Standard Mark for Fe 500 grade TMT bars (8 mm to 25 mm), strengthening its position in the construction and infrastructure sectors by enhancing quality assurance and manufacturing capabilities.
Expert Opinion
- Due to a clear drop in demand, manufacturers have implemented more significant price reductions than those seen in early May. If this weak demand continues, prices are likely to face additional downward pressure in the coming week. The slowdown is affecting both the primary and secondary markets, reflecting a broad decrease in buying activity and a more cautious stance from purchasers overall.
- On the supply front, conditions remain steady. Distributors have adequate inventory to meet current needs, with no signs of shortage or strain. Meanwhile, production facilities are receiving minimal new orders, further indicating that supply is well-matched to the slower demand and that there are no immediate concerns about disruptions or stockouts.