Primary TMT Prices Dip Again Amid Stagnant Demand

Key Takeaways

• Prices Continue to Slide: Primary TMT base prices have been reduced across key zones due to subdued market demand.
• Demand Holds Steady but Low: Enquiry levels are flat, with no signs of strong pickup in the near term.
• Suppliers Maintain Steady Inventory: Adequate stock levels ensure smooth supply, preventing any availability concerns.
• Industry Focuses on Sustainability: AUSL’s solar plant investment reflects long-term energy cost control in TMT production.

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

• Over the past few days, there has been a slight improvement in customer requirements; however, the overall level of enquiries throughout the week has remained relatively stable. This suggests that market demand is currently in a holding pattern, showing no significant upward or downward movement. In alignment with broader market trends, prices have been adjusted further downward, signalling a continued softening across the sector.
• On the supply side, suppliers are responding assertively to the subdued demand by adopting more competitive approaches. Meanwhile, distributors are maintaining adequate inventory levels, ensuring a steady supply of materials and preventing any disruptions in availability.

Primary TMT News

Aditya Ultra Steel Ltd (AUSL), listed on the NSE-SME since September 2024, announced a Rs 15.35 crore investment in a 5,000 KWP solar captive power plant in Jasdan, Rajkot. The project, aimed at powering its TMT bar manufacturing under the 'Kamdhenu' brand, underscores the company’s push toward sustainability and energy cost stability.

Expert Opinion

• In response to the noticeable decline in demand, manufacturers have introduced more price cuts compared to levels seen in early May. If this subdued demand persists, the market is expected to experience further downward pressure on prices in the upcoming week. The slowdown in demand is evident across both primary and secondary segments, indicating a widespread reduction in purchasing activity and a more cautious approach from buyers across the board.
• On the supply side, the situation remains stable. Distributors are holding sufficient inventory, which continues to meet current requirements without any strain on availability. Additionally, production facilities are seeing only a trickle of new orders, reinforcing the notion that supply is comfortably aligned with the slower pace of demand, and there are no immediate risks of shortages or disruptions.