Secondary TMT Market In India Soars With Price Hike In Northern India- Find Out Why

The secondary TMT (Thermo-Mechanically Treated) market in India experienced a slight improvement in demand over the past two days, leading to a significant price increase across major markets. The Northern region witnessed a price hike, while other parts of the country remained relatively stable. This article explores the reasons behind the demand recovery, regional variations in pricing, and the outlook for the near future.

Present Situation

• Demand Surge In Northern India- The North-based sellers reported a considerable uptick in the market due to active buying, resulting in supply concerns for specific sizes of TMT. After a prolonged period of silence, buyers, although still cautious, have been compelled to book materials due to limited availability. The demand recovery can be attributed to delayed payments to contractors and the onset of rains in some parts of the country, which has reignited construction activity. However, other regions have not experienced a similar level of demand improvement, OfBusiness assessed.

• Stable Market Conditions In Eastern, Western, And Southern India- Unlike the Northern regions, the secondary TMT markets in Eastern, Western, and Southern India have remained stable, with no significant price changes observed since Monday, 15 May 2023. In Maharashtra and Southern parts of the country, demand has been average, and buyers have shown less interest in booking orders at higher rates. Consequently, sellers have had to maintain steady prices to attract buyers.

• Regional Price Variation- The surge in demand in the Northern regions, specifically Delhi NCR and Mandi Gobindgarh, led to a maximum increase of Rs. 600/ton in prices. Meanwhile, Chhattisgarh and Gujarat markets experienced a price hike of Rs. 500/ton. On the other hand, the Eastern, Western, and Southern regions saw no price changes, indicating a relatively stable market.

Current TMT Offers

• As of now, the offers from mid-sized mills in various regions are as follows: (prices for 12-25 mm on ex-plant basis as on 16 May’23)
  • Delhi: Rs. 52,700/ton
  • Raipur: Rs. 48,700/ton
  • Ahmedabad: Rs. 52,300/ton
  • Jalna: Rs. 52,300/ton
  • Wardha (Sangam TMT): Rs. 49,300/ton
  • Hyderabad: Rs. 53,000/ton

Market Outlook

While the secondary TMT market has witnessed a sudden demand recovery, industry experts anticipate that the current price support is temporary. In the near future, prices are expected to remain stagnant as the market awaits further demand and stabilization of the primary product. Despite the recent surge, the overall domestic market has remained average, with the Northern region being the exception.

OFB’s Insight

The secondary TMT market in India experienced a sudden demand recovery, primarily driven by improved buying in the Northern regions, delayed payments to contractors, and the onset of rains. While the Northern market witnessed significant price increases, other regions remained relatively stable. Looking ahead, the market is expected to stay stagnant, awaiting further demand and the stabilization of primary products. Overall, the domestic market has remained average, except for the Northern region, which experienced a notable demand recovery.