Sharp Price Hike in Primary TMT as Distributors Raise Rates

Key Takeaways

• Primary TMT Prices Climb Higher: Rates have surged across North, West, and South India, with further hikes anticipated due to material shortages.
• Market Instability Persists: Supply constraints and price hikes by manufacturers are causing volatility, making procurement more challenging.
• Global Trade Impact: US steel tariffs could disrupt exports, but India’s overall exposure remains limited due to low export volumes.
• Demand Remains Strong: Rising infrastructure activity is keeping demand steady despite price fluctuations in the market.
• Procurement Advisory: Buyers should plan ahead to mitigate risks from rising costs and uncertain supply conditions.

Primary TMT Prices

• Prices are as follows (Size 12 to 32mm):
• Ex-Mumbai: Rs. 56,000-56,500/mt
• Ex-Delhi NCR: Rs.56,000-56,500/mt
• Ex-Vizag: Rs. 53,500-54,000/mt
• Note - Distributors across North, West and South have increased the prices further. Above pricing is based on the same.

Primary TMT Demand & Supply

The prices have seen a sharp increase throughout the month of March. This surge in rates can be attributed to significant hikes implemented by manufacturers and distributors due to material shortage. As a result, the market is currently experiencing a period of instability. Moreover, the ongoing shortage of essential materials continues to impact the industry, and distributors are forecasting further price escalations in the near future. This combination of rising costs and material scarcity has created an environment of uncertainty and volatility, with little sign of immediate relief.

Primary TMT News

• US Steelworkers Union Fights Back as Trump’s Tariffs Raise Concerns: The United Steelworkers (USW) union is pushing for retaliatory tariffs and a "Buy Canadian" strategy after Trump imposed 25% tariffs on steel and aluminium imports.
• Indian officials say the tariffs will have minimal impact, as India exports less than 100,000 mt of steel to the US. However, exporters are worried about delayed shipments and reduced demand.
• Industry groups warn that higher US prices will hurt consumers, potentially lowering demand for Indian exports. The overall impact will depend on which countries receive exemptions.

Expert Opinion

• The market is currently experiencing a noticeable upward trend in both demand and pricing. The ongoing shortage of essential materials is having a significant impact on both the supply and demand dynamics, creating a situation where the availability of products is limited while demand continues to grow. This imbalance is expected to persist throughout the remainder of March, with no immediate resolution in sight. In fact, just this week, prices have seen an even steeper increase, further exacerbating the challenges faced by both consumers and businesses alike.
• This pattern of rising costs and constrained supply is likely to continue influencing the market for the foreseeable future.