Primary TMT Prices Rise as Distributors Hike Rates

Key Takeaways

• TMT Prices Increase: Distributors across North, West, and South India have raised TMT prices, leading to higher market rates and influencing overall trade dynamics.
• Demand to Surge: Market demand remains steady, but a significant increase is expected in March due to supply constraints and rising infrastructure projects.
• Global Impact: The U.S. steel tariffs have impacted India’s exports, but RBI’s strong reserves and monetary policies are helping stabilize the economy and steel sector.

Primary TMT Price

• Primary TMT Prices are as follows (Size: 12 to 32 mm):
• Ex-Mumbai: Rs. 52,000-52,500/ton
• Ex-Delhi NCR: Rs. 52,000-52,500/ton
• Ex-Vizag: Rs. 50,500-51,500/ton
• Note: Distributors across North, West, and South have increased prices. The above pricing reflects these changes.

Primary TMT Demand & Supply

According to current trends, market demand appears to be steady. Since January, the cost of both primary and secondary mills has increased. The availability of material from distributors impacts both supply and demand. A significant rise in demand is expected in March. Vendors have substantially raised prices.

Steel News

The U.S. has imposed a 25% tariff on steel and aluminium, impacting India’s $4 billion exports in 2023. The rupee is under pressure, but the RBI’s $600 billion reserves provide stability. A 25 bps rate cut to 6.5% aims to boost growth by lowering domestic borrowing costs. While export losses pose a challenge, cheaper capital and rising consumption could support the steel industry, mitigating the impact of U.S. tariffs on India’s economy.

Expert Opinion

Limited material availability continues to affect both supply and demand. This shortage has led to rising costs, and with further material shortages expected, prices are likely to increase further in the coming month.