Indian TMT Market: May 2023 Performance So Far And Latest Prices

The Indian Rebar (TMT) market has experienced a lackluster response and uncertain price movements in recent times. During May 2023, prices remained mostly downward, leading market participants to anticipate further declines. As the industry awaits primary mills to announce price revisions in June 2023 month, it becomes crucial to assess the Indian Rebar (TMT) market performance. Let’s get straight into it.

Price Movements

• Primary TMT- In May 2023, the price correction in primary TMT was noticed at around Rs. 3,000-4,500/ton from the prices in April 2023 at Rs. 59,000-59,500/ton ex Mumbai and Delhi NCR, and Rs. 56,000/ton ex Vizag. However, the prices dropped around Rs. 500/ton on a weekly basis.

• Secondary TMT- The secondary TMT prices fell at about Rs. 2,000-3,000/ton month on month as against Rs. 50,500/ton ex Raipur, Rs. 54,700/ton ex Hyderabad, Rs. 54500 ex Delhi NCR and Rs. 53,700/ton ex Ahmedabad, respectively. As compared to last week prices plunged by Rs. 1,100-1,800/ton.

Challenges

• Poor Demand & Selling Pressure– The continuous decrease in prices, coupled with poor demand, has put immense selling pressure on mills. Buyers have put bulk purchases on hold, and need-based bookings have become more prevalent. Rolling mills faced difficulties in clearing their inventory, even with lower offers, as cautious procurement strategies were adopted by buyers in response to the highly volatile market. This has impacted the overall sales and inventory management for mills, sources informed Ofbusiness. 

Current Prices & Offerings

• Primary TMT: Here are the current prices:
  • Ex-Mumbai: Rs. 55,000-55,500/ton
  • Ex-Delhi NCR: Rs. 55,000-55,500/ton
  • Ex-Vizag: 53,000-53,500/ton

Note- The prices offered by companies directly to institutional and corporate buyers and retail prices are Rs. 1,000/ton more than the above-mentioned prices.

• Secondary TMT: Here are current offers with daily changes:
  • Raipur: Rs. 47,500/ton (down by Rs. 300/ton)
  • Hyderabad: Rs. 51,900/ton (same)
  • Delhi: Rs. 51,500/ton (down by Rs. 300/ton)
  • Ahmedabad: Rs. 51,600/ton (down by Rs. 200/ton)

OFB’s Insight

The Indian Rebar (TMT) market currently faces several challenges, including a significant decline in prices, poor demand, and cautious procurement strategies. The market outlook remains uncertain, with market participants expecting further price declines. Primary mills’ upcoming price revisions will play a crucial role in shaping the market dynamics. As the industry navigates these challenges, stakeholders must closely monitor market trends and adapt their strategies accordingly to sustain and thrive in this highly volatile environment.

Read more: Indian Scrap Industry Experiences Moderate Trade: Will It Affect Prices?

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