TMT Prices Increase as Supply Shifts to Wagons; Demand Set to Rise

Primary TMT Price

• Prices are as follows (size 12 to 32mm):
• Ex-Mumbai: Rs. 51,000-51,500/ton
• Ex-Delhi NCR: Rs. 51,000-51,500/ton
• Ex-Vizag: Rs. 49,500–50,000/ton
• Note - Distributors across North, West and South have increased prices. Above pricing is based on the same.

Primary TMT Demand and Supply

• Since the month of September, there has been a rise in market demand. Primary mill prices have gone up by Rs 500 to 1,000/ton. The distributors anticipate that the primary mills will raise prices even more this week. The demand pattern will determine the next course of action.
• Although supply and demand are currently in balance, SAIL has ceased allocating materials via roads and will instead material will move via wagons, which could lead to problems with supply and demand in the near future.

Primary TMT News

• India's steel imports surged 26.5% to nearly $7.3 billion during May-July 2024, compared to the same period last year, according to the steel ministry's Steel Import Monitoring System (SIMS).
• Top 10 product categories such as stainless-steel flats, ingots, sanitary ware, and hot rolled coils comprised 35% of the imports.
• The report attributed rising imports primarily to price factors. Other factors include customer standards, quantity availability, and delivery time.
• China, Norway, and Indonesia have substantially increased their exports to India, increasing to $979 million, $141 million, and $208 million respectively, in July from May this year.

Expert Opinion

• The flow of inquiries was higher in the first week of September than it was in the previous month, suggesting that the demand trend is stable. In the first week of September, the primary mills raised their pricing. This week, more price increases are anticipated by the distributors.
• The future supply and demand will be problematic since mills have chosen to distribute the material by wagons rather than the road network, which will hinder the availability of the material. The demand is expected to rise in the near future.