Primary TMT Prices Remain Strong, Further Revisions are Expected

Key Updates:

• Primary TMT Prices: Ex-Mumbai and Ex-Delhi NCR prices for TMT range between Rs. 52,000-52,500/mt, while Ex-Vizag is slightly lower at Rs. 51,000-51,500/mt.
• TMT Demand & Supply: Rising market prices are influenced by supply shortages from SAIL, causing some brands to increase their rates, with distributors expecting further price hikes soon.
• Government's PLI Scheme: The government launched an updated Rs 4,400 crore PLI scheme, aiming for 10% annual growth, with a focus on specialized steel production. Applications open till Jan 31, 2025.

Prices

• Primary TMT Prices are as follows (size 12 to 32 mm): Ex-Mumbai: Rs. 52,000-52,500/mt Ex-Delhi NCR: Rs. 52,000-52,500/mt Ex-Vizag: Rs. 51,000-51,500/mt
• Note: Distributors across North, West, and South have revised prices. The above pricing is based on the same.

TMT Demand & Supply

Market prices appear to be rising as a result of other brands opening at higher prices due to a shortage of SAIL's material in some areas. The pace of investigation is steady. Distributors anticipate more price increases in the coming days due to a shortage of materials.

News

The government has launched an updated Rs 4,400 crore PLI scheme for the steel sector, focusing on attracting investments in specialized steel production. Steel Secretary Sandeep Poundrik highlighted the growing demand, with India aiming for 300 million tonnes of steel by 2030. The scheme includes coated steel, specialty rails, and end-to-end manufacturing. Rs 4,000 crore from the previous PLI 1.0 scheme will be redirected to PLI 1.1, which expects Rs 3,000 crore investments and 10% annual growth. Applications are open until January 31, 2025.

Expert Opinion

Since there is little variation in the inquiry flow, the demand trend appears constant. According to market discussions, the costs are expected to rise by an additional Rs 500 per mt due to the material shortage.