Primary TMT Prices Up Amid Supply Shortage and Holiday Season Impact
The primary TMT market is experiencing a rise in prices due to supply shortages, while demand has slowed down. Distributors are anticipating further price hikes as the festive season impacts demand and potential maintenance at key facilities approaches. Additionally, India’s steel ministry is considering a temporary safeguard duty to curb rising imports.
Key Takeaways
- Price Increases: Primary TMT prices have risen across North, West, and South India, with prices ranging from Rs 52,500 to Rs 55,000/ton.
- Supply Constraints: Material shortages are driving up prices, with demand likely to remain sluggish due to the festive season. Distributors expect further price revisions in November.
- Government Intervention on Imports: The Indian government is considering imposing a temporary safeguard duty to counter the influx of cheaper steel imports from China, protecting domestic producers.
Primary TMT Current Prices
- Prices are as follows (size 12 to 32mm): 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 Dynamics
- Due to a lack of supply, prices are trending upward and market demand appears to be slowing. According to the distributor, there will be no more maintenance performed on the ISP facility. 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
- India’s steel ministry is reportedly considering a temporary safeguard duty to address the surge in cheaper steel imports from China. Imports from China have hit a 7-year-high, with Indian steelmakers raising concerns about the impact on local prices.
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Expert Opinion
- Due to the disruption of the supply and demand patterns caused by the material allocation through wagons, the distributor is experiencing a shortage of material. The holiday season has caused a decrease in the volume of inquiries. Given that the plants are anticipated to undergo maintenance in November, the distributors anticipate further price increase in the near future.