Primary TMT Prices Strong Amid Upcoming ISP Maintenance
Primary TMT prices have recently seen an upward trend, with current rates at Rs 54,500–55,000/ton in Mumbai and Delhi. This increase is driven by supply constraints and upcoming maintenance of the ISP facility. The central government has abandoned plans to privatize the Visakhapatnam Steel Plant, focusing instead on its revival with an investment of Rs 1,650 crore.
Key Takeaways
- Current primary TMT prices range from Rs 52,500 to Rs 55,000/ton, with recent increases attributed to supply constraints.
- The decision to halt the privatization of the Visakhapatnam Steel Plant reflects a focus on reviving RINL, with significant financial support from the government.
- Maintenance of the SAIL's ISP facility in November is expected to impact pricing and supply, alongside the festive season affecting demand.
- Distributors face material shortages, leading to decreased inquiries, with expectations of further price hikes due to maintenance schedules.
Primary TMT Prices
- Prices are as follows : Ex-Mumbai: Rs. 54,500-55,000/ton Ex-Delhi NCR: Rs. 54,500-55,000/ton Ex-Vizag: Rs. 52,500–53,000/ton
- Note - Distributors across North, West and South have increased prices. Above pricing is based on the same.
Primary TMT Demand & Supply Trends
- Due to a lack of supply, prices are trending upward, and market demand appears to be slowing. According to the distributor, the SAIL's ISP unit facility will go under maintenance in the month of November. The distributor anticipates a revised pricing in November. In a week or two, a clear picture will appear. The holiday season will further impact the demand trend.
Primary TMT News
- In a surprising move, the central government has decided to drop its privatization plans for the Visakhapatnam Steel Plant (VSP), focusing instead on revitalizing the Rashtriya Ispat Nigam Limited (RINL). In just two months, the government has infused Rs 1,650 crore into RINL, with Rs 500 crore allocated for equity and the remainder for working capital.
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Expert Opinion
- The distributors are facing a material scarcity as a result of the material allocation through wagons, which has disrupted supply and demand patterns. The number of inquiries has decreased because of the festive season. The distributors expect more price increases soon because the SAIL ISP plant is expected to undergo maintenance in November.