Primary TMT Prices Stabilize as Demand Increases; India Considers Safeguard Duty on Imports

Key Insights

• Steady Prices Across Regions: Primary TMT prices are steady, with small reductions by distributors, ranging from Rs. 51,500 to Rs. 52,500/mt in major cities.
• Improved Demand in December: Demand for primary TMT has increased in December, with a higher inquiry-to-conversion ratio compared to November.
• Government Import Tax Proposal: India is planning a 25% temporary tax on steel imports, mainly from China, to safeguard domestic manufacturers.
• MSME Support: MSMEs will receive raw materials at FOB export prices under the new safeguard duty framework, supporting smaller manufacturers.
• Positive Market Sentiment: The market shows an upward trend, with steady prices and abundant materials available from distributors, signalling a positive outlook.

Primary TMT Prices

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

Primary TMT Demand & Supply

Compared to November, there was a higher demand in December. The primary mills' rates are steady, and the volume of inquiries has increased. The ratio of inquiries to conversions has gone up. The upcoming months will be better because the trend appears to be improving.

Primary TMT News

India plans a temporary 25% tax on steel imports to counter cheap imports, especially from China. Initial opposition from small manufacturers eased after larger domestic producers assured lower steel prices. A government investigation into the impact of these imports is expected to conclude soon, leading to the safeguard duty’s implementation. MSMEs will receive raw materials at FOB export prices, as per Pankaj Chadha, chairman of the Engineering Export Promotion Council of India.

Expert Opinion

The market is exhibiting an upward trend. Positive mood is evident in the market. The market's prices are steady and there are plenty of material available from the distributors.