Primary Mills TMT Price Movement In Q1 2023 So Far

After a constant rise in TMT prices since November 2022 till January 2023, the primary mills’ TMT prices registered major changes in February 2023. The decrease in demand along with sharp price corrections in secondary mills’ TMT prices has forced primary steel mills to adjust their prices.

TMT Price Movement

After a sharp price increase in January 2023, the primary mills’ TMT prices decreased in February by approximately Rs 1,500/ton in the west and north regions, standing at nearly Rs 62,000-63,000/ton in the last week of February 2023. The prices continued to soften at the beginning of March 2023, standing at around Rs 61,000-62,000/ton ex works Delhi and Mumbai.

Price Downtrend Reasons

According to market experts, the weak demand has led to a slight rise in the inventories of primary mills TMT in the second half of February 2023. As a result, the mills had to adjust their prices as per the buying inquiries and quantity bookings. Furthermore, distributors also started offering trade discounts, which further weighed down on the primary mills’ TMT prices. 

Secondary Mills TMT Price Impact

TMT prices by manufacturers in secondary mills also fell by up to Rs 3,000/ton in February 2023. Overall, this impacted the demand and lifting of primary mills TMT, resulting in a downtrend in prices in the previous month, as opposed to the sharp surge witnessed from November 2022 to January 2023.

Short-Term Prospects

The short-term outlook for primary mills’ TMT prices seems to be stable, with prices expected to remain at the current levels. Although TMT demand has been weak, the primary mills’ TMT inventories slightly rose last month, which may limit the possibility of a further price correction. However, any unforeseen changes in demand or supply dynamics may impact the TMT prices in the short term. It is important for market players to stay updated with the latest market trends and dynamics to make informed decisions.

Insight

The downtrend in primary mills’ TMT prices in February 2023 after the sharp rise in January 2023 can be attributed to weak demand and sharp price corrections in secondary mills’ TMT prices. However, it is important to note that prices have continued to soften in March 2023 as well. Therefore, it will be interesting to see how the market dynamics shape up in the coming months and whether there will be any further adjustments in TMT prices by primary mills.

Read more: India’s Finished Steel Production And Consumption Drops In February 2023