Indian TMT Market Sees Price Escalation; What’s Next?

The domestic TMT market, including both the primary and the secondary TMT segments, witnessed a continuous surge in price month-on-month. The reason for this inflation in rates was higher raw material cost, which further incurs production costs, thus putting an extra burden on the end products’ offers. Primary mills have, however, raised their offers for early May sales. Let’s understand the market trends and study deeply the mindset of industry participants amid this optimistic market flow.

Domestic TMT Price Trends

Major primary TMT manufacturers raised their offers by around Rs. 1,000-1,500 per ton week-on-week. However, at the ground level, in the distributors’ and dealers’ markets, the price hikes were implemented slowly, keeping buyers’ acceptance in mind. In some regions, a few distributors were also reported to have given away discounts.

Looking at the month-on-month change, primary TMT rates have shot up in the range of Rs. 4,500-5,500 per ton. The rates have escalated up to 3% weekly while a surge in prices by almost 11% was seen MoM. In addition, the price gap between primary and secondary markets has crossed the level of Rs. 3,000 per ton, reaching approximately Rs. 5,000 per ton. 

In the secondary segment, induction furnace-based re-rollers witnessed slight active trades following rising offers. Prices for secondary TMT have increased by about 2-4% to Rs. 1,100-1,600 per ton. 

Mills’ Planned Repairs & Material Scarcity

The market is witnessing a surge in demand across both primary and secondary segments. Anticipated price increases are looming due to the upward trend in the secondary market and shortages in materials from primary mills and their distribution channels.

Once market conditions stabilise in terms of both material availability and pricing, supply is expected to normalise. However, this may take some time as one of SAIL’s plants is scheduled for maintenance next week. Also, with the shortage in RINL Vizag plant, primary mills have been seeing severe scarcity of raw materials.

TMT Market Outlook

Currently, the market participants are going through high uncertainty due to the recent price escalation in both the TMT segments. Experts believe that if any additional price hikes happen in the secondary market, it could impede primary pricing adjustments. Material shortages are further exacerbating the situation, requiring a few days to rectify the supply-demand dynamics in the primary segment.

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