As the second half of September unfolds, industry participants are closely monitoring the strategic moves of primary Steel mills in the Indian domestic Steel market. Notably, the market has absorbed recent price increases by major mills due to decent demand, leading to anticipation of further price adjustments. However, primary TMT offers remained steady as compared to last week.
Distributors have adjusted their prices based on stock availability and immediate buyer needs. This has resulted in varying trading prices across the market. However, due to escalating raw material costs, any significant price reductions or fluctuations appear unlikely.
Note: These prices are GST exclusive taken into consideration according to working from regional distributors of different primary segment brands throughout.
Primary TMT mills continue to ensure a steady supply of materials to meet the growing demand. Construction sites and projects are actively seeking these materials, driving inquiries for primary steel. Indian Primary rolling mills, especially those producing TMT, are gearing up to maximize their capacity utilization for the peak demand season starting from October 2023 onwards.
The positive primary TMT market sentiment is partly fueled by the thriving secondary TMT market, where demand remains active. The prevailing optimism in the industry suggests the possibility of a further price increase, estimated at around Rs. 1,000-1,500/ton. However, primary mills are cautious about pushing prices too high, as doing so may lead to a shift in demand towards the secondary segment. Striking the right balance becomes crucial to maintaining market share.
The Indian Steel market is in a state of anticipation as primary mills consider further price adjustments. The pricing strategies of distributors reflect the current market dynamics, driven by decent active demand and rising raw material costs. While primary TMT mills enjoy steady inquiries and optimistic prospects, they must tread carefully to ensure they do not alienate potential customers to the secondary market. With the demand season set to peak in October 2023, the coming weeks will be crucial in determining the direction of Steel prices in India.