OfBusiness TMT Dailies

9th June’23

Price

• Currently, both primary mills and local distributors have established a fixed price range for their operations. The current operative prices for primary TMT are as follows:
  • Ex-Mumbai: Rs. 53,000-53,500/ton
  • Ex-Delhi NCR: Rs. 54,000-54,500/ton
  • Ex-Vizag: 51,500-52,000/ton
• The above prices are offered by companies directly to institutional and corporate buyers and retail prices are Rs. 1,000/ton more than the above mentioned prices.
• Secondary TMT prices remain unchanged today across regions. The last operated prices of secondary TMT:
  • Raipur: Rs. 48,200/ton
  • Delhi: Rs. 52,200/ton
  • Ahmedabad: Rs. 51,700/ton
  • Hyderabad: 50,700/ton (up by Rs. 200/ton)

Demand and Supply

• The primary segment is experiencing smooth supply with surplus material stocked in mills, leading to negotiable prices for larger quantities. Demand is increasing for secondary TMT, but manufacturers suspect raw material scarcity as the cause of price hikes. Secondary TMT demand was already low due to monsoon arrival, and now consumers are shifting to primary due to a marginal price difference.

News

• Vedanta plans to auction 20,000 tonnes of iron ore lumps from Nadidihi mines in Odisha. Sponge Iron CDRI price in Bellary market increased to Rs. 28,800/ton, reflecting rising demand. Billet price in Rourkela rose to Rs. 43,000/ton, indicating positive demand and market conditions.

OFB’s Opinion

• With the monsoon’s arrival and the mandatory price difference from primary TMT. Primary TMT has lowered prices, putting pressure on secondary to follow suit. However, the expected rate reduction hasn’t been observed in the market for the past three days. The increasing rates are unsustainable as consumers prefer primary due to the price difference, causing supply issues for primary.