What Is Current TMT Market Scenario In India And China?

The trend in the Indian primary TMT market remained steady with no significant fluctuations over the past few days. When compared week-on-week, there has been a drop of up to Rs 600/ton pan India. However, there have been variations in prices among different major mills. When it comes to the TMT price trend in China, it has been negatively impacted. In this article, let’s explore the current TMT prices and market trends in India and China.

Indian Market

• Primary Mills’ TMT Prices In India– Major mills (primary) offer TMT at around Rs 59,000-59,500/ton ex-yard Delhi and Mumbai. However, in Andhra Pradesh, bookings were seen at Rs 56,000/ton ex-plant. In Maharashtra, mills were noticed to offer at around Rs 58,500/ton ex-works. (These prices are excluding GST.)

• Price Difference Between Primary And Secondary TMT- The current price gap between primary and secondary TMT has been hovering around Rs 4,000-5,000/ton. The domestic market has witnessed limited trading activities as buyers seemed very cautious and restrict themselves to opt for bulk purchases. As a result, only necessary volumes are being booked due to volatile sentiments. 

Chinese Market

• Price Trend- The Chinese rebar market has also observed negative trends, with rebar quotations falling continuously in the second week as demand for the product continues to decrease while supply remains high. To prevent a substantial decrease in prices, some Steel companies are currently reducing their production to achieve a balance between supply and demand. Rolling mills were seen trying to secure their profit margins as well.

• Demand – The market is experiencing uncertainty regarding demand, which is expected to persist until the end of April 2023, leading to anticipated volatility during May 2023-June 2023. However, there is optimism among market participants for a rebound in prices during the latter half of the year.

Indian TMT Market Outlook

As the market predictions suggest a slight price correction in primary TMT prices, buyers were also eying the same and opted for wait-and-watch mode. Market experts reported to Ofbusiness that the primary TMT prices are expected to notice a slight fall of up to Rs 500/ton.

OFB’s Opinion 

As global Steel prices fall, buyers’ expectations of more price cuts and resistance to buy at current offers have been noticed. Producers are being compelled to lower their prices due to the impact of reduced demand in both domestic and export markets. The current trend in primary TMT prices in India has been steady, but a slight price correction is expected. The Chinese Steel market is undergoing significant changes, with negative trends observed in the rebar market. There is an expectation of a price recovery in the second half of 2023.

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