Primary TMT Prices Stable, Weak Demand Remains

Price

• The prices of primary TMT have remained stable over the weekend, following a reduction of Rs 1,000-1,500/ton in the initial days of August orders.
• The current prices for major locations are as follows:
• Ex-Mumbai: Rs. 51,000-51,500/ton
• Ex-Delhi NCR: Rs. 51,000-51,500/ton
• Ex-Vizag: Rs. 50,500-51,500/ton
• The prices are for 12 to 32mm sizes, Grade Fe 550/550D and exclude trade discounts, as well as GST.
• Distributors across the North, West, and South have observed reduced prices from all primary mills. The above pricing reflects this trend.

Demand and Supply

• The market demand appears lower than in July, mainly due to persistent rain. Suppliers are willing to negotiate lower prices, especially since the JSL Angul facility is undergoing maintenance and they have a large inventory. Distributors are not facing any issues obtaining supplies.

News

• Steel Authority of India Ltd (SAIL) reported a 61% drop in consolidated net profit to Rs 81.78 crore for Q1 FY 2024-25. This decline is primarily due to lower domestic steel prices caused by increased competition from Chinese imports. Revenue from operations decreased slightly by 1% to Rs 23,997.8 crore. Standalone net profit fell by 92.3% to Rs 11 crore.
• Revenue from the Salem and Bokaro plants declined, while the Bhilai and Rourkela plants saw increases. The company is focusing on boosting production and addressing the challenges posed by cheap imports, with the government investigating as India becomes a net steel importer.

Expert Opinion

• The monsoon seems to have a limited effect on demand as the first week of August comes to an end. Demand appears to be weakening with the upcoming long weekend beginning August 15, and mills are expected to continue cutting prices.