Primary TMT Prices Dip as Market Sentiment Stays Weak
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Primary TMT prices have softened across regions as market demand remains stagnant. Distributors are open to further negotiations, with no supply shortages reported. Weak global demand, an oversupply driven by Chinese exports, and declining domestic steel prices are adding pressure to Indian steelmakers' margins.
Key Takeaways
- Price Updates: Primary TMT prices stand at Rs. 54,500-55,000/mt in Mumbai and Delhi NCR, and Rs. 52,500-53,500/mt in Vizag.
- Demand Trends: Enquiry flow in November indicates a stagnant demand with declining prices in both primary and secondary markets.
- Global Oversupply: Chinese steel exports surged 22% YoY, contributing to global price pressure and reduced margins for Indian steelmakers.
- Customer Hesitation: Buyers expect further price cuts despite recent reductions, reflecting weak market sentiment.
Primary TMT Prices
- Prices are as follows (size 12 to 32mm): Ex-Mumbai: Rs. 54,500-55,000/mt Ex-Delhi NCR: Rs. 54,500-55,000/mt Ex-Vizag: Rs. 52,500-53,500/mt
- Note - Distributors across North, West and South have increased prices. Above pricing is based on the same.
Primary TMT Demand & Supply
- Given the declining trend in enquiries in November, demand seemed to be stagnant. There was no lack of materials, and supply and demand are balanced. As November comes to an end, both primary and secondary prices are declining. The distributors are ready to negotiate on pricing.
Primary TMT News
- Indian steelmakers face margin pressure in Q3 FY25 as weak demand and a 22% YoY surge in Chinese steel exports to 92 MTPA create a global oversupply, pushing prices down. In Mumbai, hot-rolled coil (HRC) prices fell 8% YoY and 6% QoQ to Rs 51,802 per mt in Q2 FY25, with spot prices dropping further to Rs 49,000/mt. While China's property sector shows signs of recovery, profitability remains under strain.
Expert Opinion
- The clients are willing to negotiate further, and the suppliers have enough material in hand. The enquiry traffic suggests that market sentiment is not positive. Despite the price reductions, customers are still hesitant to buy, and they expect more price reductions this week. The conversion ratio is less than the flow of queries.
Daily Market Report
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