OfBusiness TMT Dailies

24th May’23

Price

• Secondary TMT prices dropped by Rs. 800-1000/ton in the first 3 days of the week, and Rs. 300-500/ton compared to yesterday. Primary Market faces pressure to lower prices due to sluggishness and increasing inventory.
• The current operative prices for primary TMT are as follows:
  • Ex-Mumbai: Rs. 55,000-56,000/ton
  • Ex-Delhi NCR: Rs. 55,500-56,000/ton
  • Ex-Vizag: 53,500-54,000/ton
• The above prices are offered by companies directly to the institutional and corporate buyers and retail prices are Rs 1,000/ton more than the above-mentioned prices.
• The last operated prices of secondary TMT:
  • Raipur: Rs. 48,200/ton (down by Rs. 300/ton)
  • Hyderabad: Rs. 52,000/ton (down by Rs. 500/ton)
  • Delhi: Rs. 52,200/ton (down by Rs. 300/ton)
  • Jalna: Rs. 51800 (down by Rs. 500/ton)
  • Wardha (Sangam TMT): Rs. 49,200/ton

Demand and Supply

• The secondary TMT market is currently facing declining demand, causing sellers and manufacturers to aggressively sell their inventory to maintain production capacity. However, customers are waiting for further price reductions. Meanwhile, the primary TMT market has sufficient supply but is experiencing piled-up inventories as customers postpone their orders.

News

• Indian steelmakers are facing challenges due to a shortage of railway rakes for transporting raw materials and finished Steel. This has resulted in a buildup of finished Steel at plant sites. Sellers are offering discounted prices and secondary manufacturers are aggressively pushing their products to compete with primary competitors. Additionally, Rungta Steel has opened a new Wire Rod Steel plant in Dhenkanal, Odisha, to increase production capacity and serve key markets in several states.

OFB’s Opinion

• Secondary TMT prices are continuously declining, widening the gap with its primary competitor. The unsustainable uptrend is driven by reduced demand. Primary producers have lowered prices by Rs. 500/ton and anticipate a further decrease of Rs. 1,000/ton. Consequently, secondary prices may experience a correction of Rs. 500/ton.