SAIL Cuts Prices but Primary TMT Market Faces Slowed Demand and Uncertain Outlook
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Primary TMT prices have been slightly reduced by SAIL and increased by distributors across various regions. Despite price reductions, demand for primary TMT has slowed down, and the market seems stagnant. Meanwhile, the Indian government is pushing for sustainable practices in the steel industry, with a focus on innovation and reducing emissions.
Key Takeaways
- Primary TMT Prices: Ex-Mumbai: Rs. 54,500-55,000/mt, Ex-Delhi NCR: Rs. 54,500-55,000/mt, Ex-Vizag: Rs. 53,000-53,500/mt.
- Demand & Supply: Distributors are holding ample stock, leading to balanced supply and demand. However, demand has slowed compared to previous month.
- Government Focus on Sustainability: Union Minister Kumaraswamy highlighted the importance of steel in India’s economic growth and net-zero targets.
- Market Outlook: Despite price cuts by primary and secondary manufacturers, demand remains unchanged. The market is expected to remain stagnant.
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. 53,000 - 53,500/mt
- Note - Distributors across North, West and South have increased prices. Above pricing is based on the same.
Primary TMT Demand & Supply
- Recently, SAIL prices were reduced by Rs 1,000/mt. The distributors are willing to haggle. Since the distributors have plenty of the material on hand, supply and demand are expected to be balanced. Compared to previous months, the demand trend has slowed.
Primary TMT News
- Union Minister HD Kumaraswamy emphasized steel's key role in India's goal of a USD 5 trillion economy and net-zero emissions by 2070. At the National Metallurgist Awards, he highlighted government support through policies like the National Steel Policy 2017 and PLI for Specialty Steel, urging innovation, recycling, and sustainable practices like hydrogen-based steelmaking.
Expert Opinion
- Since the primary and secondary manufacturers have lowered their prices, there has been no change in demand, and the market seems to be stagnating. Distributors' willingness to accept prices has not yet been demonstrated. It will be possible to see a clear image in a few days.
Daily Market Report
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