Mid-Sized Mills' TMT Market Notices Positive Trend After Continuous Fall

The mid-sized (secondary) steel market in India improved after a consistent decline for a couple of days. Among these, the induction route billet market remained strong, which had a knock-on effect on secondary TMT prices, driving them higher.

Mid-Sized Mills’ TMT Market Current Situation

• Sellers Take Advantage of Strong Market- With strong demand in the billet market, sellers have taken advantage of the situation by offering higher costs. This has led to positive price trends in the secondary TMT market, with offers increasing by Rs 200-600/ton in most major locations across India. According to market reports, major price increases have been observed in the northern and central parts of the country.
• Conversion Spread for Standalone Furnaces in Raipur- Market participants report that the conversion spread of standalone furnaces in Raipur from sponge iron (P-DRI) to billets stands at INR 15,000/t. If demand remains stable, prices are likely to continue to fluctuate.

Mid-Sized Mills’ (Secondary) TMT Current Prices

• Certified TMT Increased Offers- Secondary mills are offering certified TMT at around Rs 54,800/ton for Delhi on an ex-yard basis, with prices expected to remain volatile considering sufficient inventories with suppliers. Despite this, the market has witnessed moderate order booking at these prices.
• Semi-Finished Steel Prices Increase- In addition to the positive trends in the secondary TMT market, prices for semi-finished steel, including billet and sponge iron, have also increased by Rs 100-400/ton. Sellers have kept offers on the higher side, despite fluctuating market trends and sentiments in the north Indian market have remained supportive.

Insight

The robust performance of the secondary steel market in India is driven by strong performances in billet, sponge iron, and TMT. Positive trends in the secondary TMT market, along with increased prices for semi-finished steel, suggest a positive outlook for the industry. However, the market is expected to remain volatile, with sellers continuing to keep offers on the higher side.

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