Primary TMT Prices Stable Amidst Increasing Inquiries and Government Intervention Prospects
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Primary TMT prices remain steady across major regions, with distributors maintaining adequate stock levels and engaging in negotiations as demand stagnates. Rising imports and government plans for protective measures signal potential price stabilization.
Key Insights
- Stable demand-supply balance with increased inquiries but limited conversions.
- Distributors are open to price negotiations, unlike earlier in the month.
- Rising imports are a concern; government exploring measures to stabilize prices.
- While material scarcity was anticipated to drive up demand and prices, the market has remained stable with stagnant demand over the past two weeks. Negotiation flexibility among distributors signals no immediate disruptions.
Primary TMT Prices
- Prices are as follows (size 12 to 32mm): Ex-Mumbai: Rs. 55,500-56,000/mt Ex-Delhi NCR: Rs. 55,500-56,000/mt Ex-Vizag: Rs. 53,500 - 54,000/mt
- Note - Distributors across North, West and South have increased prices. Above pricing is based on the same.
Primary TMT Demand & Supply
- The demand and conversion ratios appear to be constant as the second week draws to a close. Although the flow of inquiries has increased, the conversion ratio is lower than the flow of inquiries. The distributors are prepared to engage in price talks, but the buyers have not yet accepted these prices. Given the distributors' adequate stock, the demand and supply pattern appears to be stable.
Primary TMT News
- Steel Secretary Sandeep Poundrik hinted that government interventions could stabilize steel prices, which are expected to rise in the coming months due to robust economic growth. Rising imports are a concern, and the government is exploring protective measures.
- India’s steel demand is projected to grow by 8% in 2024 and 2025, driven by infrastructure projects. For Q1 of FY 2024–25, crude steel production was 36.61 million mt, and finished steel consumption reached 35.42 million mt. Per capita consumption increased from 59 kg in 2013–14 to 119 kg in 2022–23, with total demand at 138.83 million mt for 2023–24.
Expert Opinion
- Demand and supply appear to be stable. The distributors were anticipating price increases from the primary mills due to material scarcity, and thought demand would increase. However, the pattern has remained unchanged, and demand has been stagnant for the past two weeks. As a result, the distributors are willing to negotiate, even though they weren't prepared to do so earlier this month.
Daily Market Report
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