Primary TMT Prices High as Market Faces Material Shortage

Key Insights

• Current Prices: Ex-Mumbai and Delhi NCR at Rs. 54,500-55,000/mt, and Ex-Vizag at Rs. 52,500-53,000/mt.
• Demand Slowdown: Holiday week impacts demand, with fewer inquiries in the market.
• Material Shortages: Wagon-based distribution and SAIL plant maintenance contribute to limited supply.
• Industry Expansion: JSW and POSCO’s new steel plant in India aims for 5 million mt/year, with growth in renewable energy.
• Expected Price Increase: Distributors expect prices to rise post-holiday as supply constraints continue.

Primary TMT Prices Today

• 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 - 53,000/mt
• Note - Distributors across North, West and South have increased prices. Above pricing is based on the same.

Primary TMT Demand & Supply Analysis

• The market seems to be steady. The approaching holiday week seems to be slowing demand. Since the distributors are distributing materials by wagons and the SAIL plant is undergoing maintenance, there is a shortage of material.

Primary TMT News Highlights

• JSW Group and South Korea’s POSCO have signed an MoU to establish a 5 million mt/year integrated steel plant in India, with plans to explore battery materials and renewable energy. JSW Energy, with a renewable portfolio in hydropower, wind, and solar, aims to double capacity to 19 GW by 2030 and increase storage to 40 GWh, investing around Rs 15,000 crore in fiscal 2025.

Expert Opinion

• Due to the disruption of supply and demand patterns caused by the material allocation through wagons, the distributors are currently facing a scarcity of materials. There have been fewer inquiries during the holiday season. After the holiday season, the distributors anticipate further price increases.