Primary TMT Prices Hold Steady; Market Awaits Budget Impact

Primary TMT

Secondary TMT

29 Jan 20251 Min ReadDaily Market Report

Primary TMT prices remain stable across major regions, with demand holding steady as January ends. Inventory shortages are expected to ease as new material arrives, balancing supply and demand. Market experts predict a potential price rise in February due to increased infrastructure spending and higher import levies on Chinese steel.

Key Takeaways

Stable Prices: Primary TMT prices remain steady in Mumbai, Delhi NCR, and Vizag. Prices range from Rs 50,000 to Rs 52,000/mt.
Supply and Demand Update: Demand remains stable. Inventory issues will ease soon as new material enters the market.
Tata Steel Expansion: Adding 10 MTPA in Odisha, boosting India’s steel capacity.
Government Moves: Higher import levies may curb Chinese steel inflow, supporting domestic demand.
Price Outlook: Prices may rise in February due to expected infrastructure spending in the upcoming budget.

Primary TMT Prices (size 12 to 32mm)

Prices are as follows:
Ex-Mumbai: Rs. 51,500-52,000/mt
Ex-Delhi NCR: Rs.51,500-52,000/mt
Ex-Vizag: Rs. 50,000 - 50,500/mt
Note - Distributors across North, West and South have kept prices stable. Above pricing is based on the same.

Primary TMT Demand & Supply

The market's demand seems to remain stable as the last week of January draws near, but prices may rise in February. Demand and supply will level out in a few days once the material is in route, despite inventory issues experienced by primary manufacturers. The equilibrium between supply and demand will be reached in a few days.

Primary TMT News

Tata Steel plans to add 10 MTPA capacity in Odisha, following a $10 billion investment over the past decade. Its Kalinganagar plant, expanded to 8 MTPA with Rs 27,000 crore, will boost India’s automotive steel production. The company has also revived Neelachal Ispat and Bhushan Steel, bringing its state capacity to 11 MTPA. Future expansions include Kalinganagar, Meramandali, and Neelachal Ispat. Tata Steel’s Gopalpur Industrial Park has attracted Rs 32,000 crore in green investments, while it continues port development and sustainable mining efforts.

Expert Opinion

There’s an indication that the market will show positive trends because steel prices will rise as a result of the government's anticipated focus on infrastructure projects when it releases the budget in February. The government is trying to decrease the supply of Chinese steel by increasing import levies, which will increase the demand for indigenous steel in the country.