Primary TMT Prices in India High Amidst Shortages and Global Steel Output Decline
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Primary TMT prices are still strong across India, Distributors in North, West, and South India have raised prices due to supply shortages and the upcoming maintenance of the SAIL ISP facility in November. Global crude steel production fell by 4.7% in September 2024, with China’s output dropping by 6.1% and India’s by 0.2%.
Key Takeaways
- Primary TMT Price Increases: Prices have risen to Rs 54,500-55,000 per ton in Mumbai and Delhi NCR, with Vizag at Rs 52,500-53,000/ton.
- Supply Shortages: Distributors are facing material shortages due to upcoming maintenance at the SAIL ISP plant in November. Further price hikes are expected.
- Global Production Decline: Crude steel production fell by 4.7% globally in September, with China’s output down 6.1% and India’s marginally down by 0.2%.
- Demand and Supply Slower: The holiday season and disruptions in supply due to material allocation issues are slowing market demand. However, prices are expected to rise again in November due to continued shortages.
Primary TMT Prices
- Prices are as follows (size 12 to 32 mm): Ex-Mumbai: Rs. 54,500-55,000/ton Ex-Delhi NCR: Rs. 54,500-55,000/ton Ex-Vizag: Rs. 52,500-53,000/ton
- Note - Distributors across North, West and South have increased prices. Above pricing is based on the same.
Primary TMT Demand & Supply
- Prices are rising and market demand seems to be slowing down as a result of a shortage of supply. The distributors claim that in November, the ISP facility would undergo maintenance. In November, the distributors expect a price change. A clear picture will be visible in a week or two. The demand pattern will be further impacted by the holidays.
Primary TMT News
- Global crude steel production fell by 4.7% in September 2024, reaching 143.6 million tons (mt) compared to 150.7 mt a year ago. China's output dropped by 6.1% to 77.1 mt, while India's production dipped slightly by 0.2% to 11.7 mt after months of growth.
Explore more industry updates and steel news here!
Expert Opinion
- Due to the disruption of supply and demand patterns caused by the material allocation through wagons, the distributors are currently facing a shortage of materials. Due to the holiday season, there have been fewer inquiries. Given that the SAIL ISP plant is scheduled for maintenance in November, the distributors anticipate further price rises in the near future.
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