Primary TMT Prices Show Stability Amid Holiday Slowdown

Primary TMT prices remain stable across major markets. Demand is slow as the holiday week approaches. Meanwhile, distributors are facing material shortages due to supply disruptions from SAIL's maintenance. They anticipate further price increases post-festive season.

Industry Highlights:

  • Stable Pricing: Primary TMT prices are steady at Rs. 54,500-55,000/mt in Mumbai and Delhi NCR, and Rs. 52,500-53,000/mt in Vizag.
  • Demand Slowdown: A decrease in demand is noted as the holiday season approaches, leading to fewer inquiries.
  • Material Scarcity: Distributors report shortages due to supply chain disruptions and SAIL's ongoing maintenance.
  • JSW Steel's Investment Cuts: JSW Steel is cutting its capital expenditure for FY25 by Rs 3,000-4,000 crore, affecting planned expansions.
  • Future Price Increase Expected: Distributors expect TMT prices to rise after the festive season due to ongoing supply constraints.

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Primary TMT Prices

  • Prices are as follows (size 12 to 32mm): Ex-Mumbai: Rs. 54,500-55,000/mt Ex-Delhi NCR: Rs. 54,500-55,000/mt Ex-Vizag: Rs. 52,500 - 53,000/mt
  • Note - Distributors across North, West and South have increased prices. Above pricing is based on the same.

Primary TMT Demand & Supply

  • It appears that the market is stable. Demand appears to be slow as the holiday week draws near. Material is scarce among the distributors since the material distributon is through wagons and SAIL plant is undergoing maintenance.

Primary TMT News

  • JSW Steel plans to reduce its capital expenditure for FY25 by Rs 3,000-4,000 crore, postponing the expansion of its Vijayanagar blast furnace-3 until next year. The company will now spend Rs 16,000-17,000 crore, down from an earlier estimate of Rs 20,000 crore, according to CEO Jayant Acharya.

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Expert Opinion

  • The distributors are currently dealing with a shortage of materials as a result of the disruption of supply and demand patterns brought on by the material allocation through wagons. The holiday season has also resulted in fewer queries. The distributors expect more price rise after festive season.