Primary TMT Prices Drop Rs 500/ton Amid Demand Concerns
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Primary TMT prices dropped by Rs 500/ton due to demand concerns. Current prices: Ex-Mumbai and Ex-Delhi NCR at Rs 50,500-51,000/ton, Ex-Vizag at Rs 50,000-51,000/ton. With ESL Steel resuming operations and ample supply, further price cuts are expected, especially with the upcoming holidays reducing demand.
Price
- After remaining stable over the last weekend, the primary TMT market reported a price drop of Rs 500/ton in major locations due to demand concerns. The current prices are as follows:
- Ex-Mumbai: Rs 50,500-51,000/ton (Down by Rs 500)
- Ex-Delhi NCR: Rs 50,500-51,000/ton (Down by Rs 500)
- Ex-Vizag: Rs 50,000-51,000/ton (Down by Rs 500)
- The prices are for 12 to 32mm sizes, Grade Fe 550/550D and exclude trade discounts, as well as GST.
- Distributors across the North, West, and South have observed reduced prices from all primary mills. The above pricing reflects this trend.
Demand and Supply
- As the second week of August begins, the ESL Steel plant is scheduled to start operations. This will streamline supply from the plant, and there is already a significant quantity of inventory and supply available with distributors.
- Further price cuts are anticipated this month. With Independence Day falling on a long weekend, demand is expected to decline. Major mills will continue to negotiate rates.
News
- Steel prices in India have dropped to a three-year low due to a surge in imports, according to industry reports. Hot rolled coil (HRC) prices have fallen to Rs 51,000/ton from a peak of Rs 76,000/ton in April 2022, while cold rolled coil (CRC) prices have declined to Rs 58,200/ton from Rs 86,300/ton.
- The surge in imports, up 68% in the April-June quarter, has pressured domestic prices. Steel imports rose by 38% in 2023-24, making India a net importer. Industry players have sought government intervention to address the impact on domestic demand.
Expert Opinion
- Distributors have sufficient supply and are willing to negotiate rates. As the monsoon season continues, major mills are expected to lower prices, and buyers will be on the lookout for these reductions, leading to further negotiations.
Daily Market Report
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TMT Prices Stable, Demand Surge Expected
Primary TMT prices remained stable in the last week of August, with Mumbai and Delhi NCR prices at Rs. 50,500-51,000/ton and Vizag at Rs. 49,000-49,500/ton. Distributors anticipate increased demand as the monsoon ends, potentially leading to price hikes in September.
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