Primary TMT Prices Under Pressure as Market Stagnates; Distributors Signal Price Drops

Key Takeaways

• Primary TMT Prices Decline: Distributors in North, West, and South regions lowered prices, with Ex-Mumbai and Ex-Delhi NCR at Rs. 52,000-52,500/mt.
• Demand Stagnates: December's anticipated growth fails to materialize, with declining queries and a stagnant market.
• Policy Developments: India considers a 25% safeguard duty on steel imports to protect domestic producers.
• Green Steel Standards Launched: India sets global precedent with carbon emission thresholds for steel production.
• Price Outlook Uncertain: Distributors predict further reductions unless demand patterns shift.

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

• It was anticipated that the market would increase in December, but it seems that nothing has changed and the market is stagnating. Based on current market patterns, more price reductions are probably in the works. The market is not showing positive trends, and the volume of queries has declined.

Primary TMT News

• India is considering a safeguard duty of up to 25% on steel imports to protect domestic producers from cheaper imports, though concerns from MSMEs about rising costs and competitiveness remain. The final decision will follow an investigation by the Directorate General of Trade Remedies (DGTR) and approval by the Ministry of Finance.
• Meanwhile, India has introduced the world’s first standards for Green Steel, defining it as steel with carbon emissions below 2.2 mt per mt of production, rated on a three-to-five-star scale. Thresholds will be reviewed every three years.

Expert Opinion

• Discussions with distributors and the market suggest that steel prices could drop sharply in the coming weeks. Whether market prices will continue to decline or increase in response to demand patterns will become evident in the coming weeks.