Primary TMT Prices Remained Stable Amid Demand Stagnancy

The Indian primary TMT market maintained price stability during the week, showcasing resilience. However, there are expectations of price revision by primary mills in the near future. The primary TMT market saw a notable increase in demand once prices rose in the first half of September. However, during the second half, the market witnessed a stagnation in demand. Nonetheless, market participants remain optimistic due to the continuous rise in raw material costs. Additionally, there is hope for the upcoming OMC auction to be held at a higher base price.

Current Offers

The primary TMT offers remained steady since last week. The current offers from major mills are as follows:

• Ex-Mumbai: Rs. 56,500-57,000/ton
• Ex-Delhi NCR: Rs. 55,500-56,000/ton
• Ex-Vizag: Rs. 54,000-54,500/ton

Secondary Market’s Influence

The secondary TMT market displayed weekly fluctuations ranging from Rs. 200-700/ton. This volatility in the secondary market significantly impacted the stabilization of prices in the primary segment. The erratic nature of secondary TMT prices compelled buyers to adopt a need-based procurement approach, limiting spot bookings. Demand for primary TMT materials remained consistent, with expectations of an increase towards the end of the month.

Supply And Negotiations

Primary mills ensured streamlined supply as they maintained sufficient inventory, supported by well-established distributor channels. Negotiations regarding primary TMT prices continued in the market, despite the stable pricing trend. However, primary TMT mills are receiving inquiries consistently.

Market Outlook

There is a potential for both primary and secondary mills to consider raising prices in response to favourable short-term demand. Market experts suggest a projected uptick of approximately Rs. 500-800/ton in the primary TMT prices in the coming days.

OFB’s Insight 

The Indian TMT steel market experienced price stability in the primary segment, bolstered by fluctuating prices in the secondary market. Need-based procurement and consistent demand for primary materials set the tone for potential price increases in the near future.