Primary TMT Prices Rise as Distributors Face Supply Shortage

Key Takeaways

• Price Hike: Primary TMT prices have increased by Rs 500/MT across major regions due to supply shortages.
• Market Demand: February demand has improved compared to January, leading to rising distributor prices.
• Supply Constraints: Limited material availability is impacting distributor pricing, with further supply issues expected in March.
• Green Steel Innovation: IIT Bombay researchers are developing cobalt-based catalysts for hydrogen-based steel production to reduce carbon emissions.
• Future Outlook: Distributors expect continued price hikes in March, with the first week providing a clearer market trend.

Primary TMT Prices

• Prices are as follows (size 12 to 32mm):
• Ex-Mumbai: Rs. 52,500-53,000/mt
• Ex-Delhi NCR: Rs.52,500-53,000/mt
• Ex-Vizag: Rs. 51,500-52,000/mt
• Note - Distributors across North, West and South have increased the prices. Above pricing is based on the same.

Primary TMT Demand & Supply

In comparison to January, there is now more demand in the market. Primary mills raised their pricing by Rs 500 per mt last week. Due to a supply and demand problem caused by a shortage of materials, the distributors are quoting rates based on market trends.

Primary TMT News

• IIT Bombay researchers have identified a potential pathway to decarbonize the steel industry by using hydrogen-based direct reduction of iron (H-DRI). The conventional steelmaking process heavily relies on coal, making the industry responsible for 7–9% of global carbon emissions. To address this, the research team has proposed using sustainable catalysts for generating green hydrogen, which can replace coal in the reduction process. In their review published in the Journal of Energy and Climate Change, the researchers highlighted advances in hydrogen generation and outlined how green hydrogen could help reduce emissions.
• Unlike traditional methods, the H-DRI process uses hydrogen to convert iron ore into steel, emitting only water vapor instead of CO₂. However, producing green hydrogen at scale remains costly, requiring new infrastructure and effective catalysts. Currently, noble metals like platinum and palladium are used for water electrolysis, but they are expensive and unsuitable for widespread application. To overcome this challenge, IIT Bombay’s team is working on cobalt-based catalysts (cobaloximes), which are water-soluble, air-stable, and more affordable. By modifying their molecular structure, researchers aim to enhance their efficiency and stability, making large-scale green hydrogen production more viable.
• This research marks a step forward in making steel production more sustainable, though challenges remain in scaling up hydrogen production and integrating it into the steel industry.

Expert Opinion

Given the current state of the market, distributors anticipate price increases in March. Due to a shortage of material with the distributors, demand and supply may be further impacted. The first week of March may provide a clear picture.