OfBusiness TMT Dailies | 19th July 2023

Price

• The primary TMT prices for certain markets are as follows:
  • Ex-Mumbai: Rs. 51,000-51,500/ton
  • Ex-Delhi NCR: Rs. 51,000-51,500/ton
  • Ex-Vizag: Rs. 50,000-50,500/ton
• The secondary TMT prices have remained stable today but offers in Mandi Gobindgarh reduced by Rs. 300/ton. Today’s Operating Prices are as follows:
  • Raipur: 45,000/ton
  • Delhi: 49,000/ton
  • Ahmedabad: 48,400/ton
  • Mandi Gobindgarh: 50,500/ton (down by Rs. 300/ton)

Demand and Supply

• Demand continues to rise steadily this week, showing promising growth potential. Inquiries are pouring in daily, indicating an upward trend in market demand. Fortunately, the supply side remains unaffected, with manufacturers and dealers ensuring smooth availability of all TMT grades. Furthermore, across various regions, demand remains consistently high, with ample supply from primary mills and relevant channels, resulting in stable prices and reliable serviceability.

News

• Population growth, urbanization, and improved living standards will drive global steel demand for years. The shift towards decarbonization and related megatrends will necessitate a significant increase in metal supply. India holds a significant position in these trends. Moreover, the government’s goal of doubling steel capacity to 300 Mt by 2030 adds to the supply-side analysis.

OFB’s Opinion

• Demand is rising across multiple regions, leading to an overall increase. Primary mills maintain smooth supply with ample material availability and competitive pricing. Secondary TMT prices are expected to rise due to improved demand, although some primary manufacturers have narrowed the price gap. Secondary supply remains smooth, attracting more project and retail orders.