Primary TMT Prices Stay High Despite Weak Market Demand; SAIL Maintenance Tightens Supply

Key Takeaways

• TMT Price Range Stays Elevated: TMT prices remain in the Rs. 54,500–58,500/MT range, with hikes across North, West, and South India.
• Demand is Slowing: Market inquiries have fallen, especially compared to March, suggesting weaker short-term demand.
• Supply Tightness Ongoing: SAIL DSP plant’s maintenance has disrupted supply, pushing distributors to raise prices.
• Price Correction Expected: With low demand and high prices, the market is likely to see a downward adjustment soon.
• India Challenges US Tariffs: India has approached the WTO over US steel duties while continuing bilateral discussions.

Primary TMT Prices

• Prices are as follows (size 12 to 32mm):
• Ex-Mumbai: Rs. 58,000- 58,500/MT 
• Ex-Delhi NCR: Rs.58,000 - 58,500/MT 
• Ex-Vizag: Rs. 54,500- 55,000/MT
• Note - Distributors across North, West and South have increased the prices. Above pricing is based on the same.

Primary TMT Demand & Supply

Since the volume of inquiries has decreased, the market's demand appears to be slow. Due to the lack of available materials, the prices are higher than the volume of inquiries. There could be a shortage on the market because the SAIL DSP facility is undergoing maintenance.

Primary TMT News

• India and the US have started bilateral talks on steel and aluminium tariffs, even as India challenges the new 25% US duties at the WTO. India requested WTO consultations under the dispute process, while the US claims the tariffs are based on national security, not safeguard measures.
• Despite WTO tensions, the US is open to resolving the issue bilaterally. The dispute mirrors the 2018 tariff row, which led to India’s retaliatory duties. Though both sides had agreed to withdraw such cases in 2023, the issue has resurfaced.

Expert Opinion

Based on current market trends, prices are expected to decrease in the coming days due to a drop in demand. Specifically, the flow of inquiries has diminished when compared to March, and this trend is likely to continue in the near future. A clearer view of the situation will emerge in a few days. In summary, prices are anticipated to fall shortly.