Primary TMT Prices Weak Amid Balanced Supply and Weak Demand
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Primary TMT prices have shown a declining trend as distributors across regions adjust rates to match stagnant demand. While supply remains adequate, distributors are negotiating prices due to weak market sentiment. Delays in steel consignments and calls for import restrictions are further impacting the industry.
Key Takeaways
- Prices: Primary TMT rates range from Rs. 52,500-55,000/mt, varying across regions like Mumbai, Delhi NCR, and Vizag.
- Demand and Supply: Demand is stagnant, supply is sufficient, and distributors are open to price negotiations to attract buyers.
- Market Sentiment: Despite price drops, buyers remain cautious, expecting further reductions, leading to weak conversion from inquiries.
- Trade Disruptions: Japanese steel shipments face delays due to NOC issues, causing losses for exporters and Indian importers.
Primary TMT Prices
- Prices are as follows (size 12 to 32mm): Ex-Mumbai: Rs. 54,500-55,000/mt Ex-Delhi NCR: Rs. 54,500-55,000/mt Ex-Vizag: Rs. 52,500 - 53,500/mt
- Note - Distributors across North, West and South have increased prices. Above pricing is based on the same.
Primary TMT Demand & Supply
- Given the declining trend in enquiries in November, demand seemed to be stagnant. There was no lack of materials. Also, supply and demand are balanced. As November comes to an end, both primary and secondary prices are declining. The distributors are ready to negotiate on pricing.
Primary TMT News
- The Japanese Embassy in India has raised concerns over steel consignments stuck at ports due to suspended No Objection Certificates (NOCs) since September 2024. The delays are causing significant costs and disruptions for Japanese exporters and Indian importers.
- Large Indian steelmakers push for import restrictions, citing profitability concerns, but MSMEs argue that domestic steel prices remain uncompetitive.
Expert Opinion
- The suppliers have enough material on hand, and the clients are open to further negotiations. The volume of inquiries indicates a negative mood in the market. Customers are still hesitant to purchase despite the price decreases, and they anticipate more this week. The flow of queries is greater than the conversion ratio.
Daily Market Report
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