Primary TMT Market Update: Rising Prices and Material Shortages Hit Distributors
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Primary TMT prices are on the rise across key regions in India, driven by increased demand and supply constraints. Recent maintenance work at the SAIL ISP facility has tightened material availability. Distributors anticipate additional price hikes by mid-November as the market remains strained with limited supply options.
Key Highlights
- Price Hike Across Regions: Primary TMT prices increased to Rs 55,500-56,000/mt in Mumbai and Delhi NCR, and Rs 53,500-54,000/mt in Vizag, reflecting price adjustments by distributors due to constrained supply.
- Supply Shortages Due to SAIL Maintenance: Maintenance at the SAIL ISP facility has led to reduced material availability, which could limit distributors’ ability to meet demand.
- Growing Demand in October: Market demand surged in October, and distributors expect further price hikes in November amid tight supplies.
- Tata Steel Q2 Results: Tata Steel recorded a Rs 759 crore net profit for Q2 FY25, rebounding from a loss in the previous year. Revenue declined due to pricing pressures from imported steel.
- Limited Bargaining by Distributors: Distributors are unlikely to negotiate on prices while SAIL’s maintenance work is ongoing, leading to greater reliance on alternative brands to meet demand.
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
- Prices at the main manufacturer have gone up in the last two to three days. The SAIL ISP facility is undergoing maintenance, which is causing a shortage of material. The month of October has seen an upsurge in market demand. Midway through November, the distributors anticipate more price increases.
Primary TMT News
- Tata Steel reported a consolidated net profit of Rs 759 crore for Q2 FY25, rebounding from a Rs 6,511 crore loss in the same quarter last year. However, revenue declined 3% YoY to Rs 53,905 crore due to pricing pressure in India, driven by cheap imports, particularly from China.
Expert Opinion
- The trend of the market is that prices are rising and there is a significant shortage of materials. In the next week, the demand pattern might be clear. Distributors may be unwilling to bargain while the SAIL facility is being maintained, increasing reliance on other brands.
Daily Market Report
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