India: MS Ingot to TMT Conversion marginally Down

Conversion from MS Ingot to TMT decreased marginally across India on W-o-W basis. It is observed that TMT prices not increase proportionally to Ingot prices.

MS Ingot to TMT conversion fell by INR 100-300/MT on W-o-W basis. TMT (Re-bar) offer have increased by INR 500-700/MT, whereas MS Ingot is raised by INR 700-1,000/MT in a week time.

SteelMint assessed following reasons from market players:

• No selling pressure on Ingot manufacturers
• Low Ingot production that sustain high demand.
• Low buying interest for Finish Long.

Ingot manufacturer based in Durgapur said, “There is no selling pressure on us to offer lower because Ingot buying is good due to limited production on power shortage prevailing over past 2-3 weeks.”

Whereas TMT Manufacturer says, “TMT prices are increasing over high raw material prices; demand of TMT is decent.”
TMT manufacturers are unable to maintain high prices owing to more selling pressure as compare to Ingot.

“We are increasing our product prices, but demand is not sufficient that can be matched with Ingot price hike. Ingot manufacturers have demand on increased offers; however we are not able to sell in high prices. We quote offer high on increased Ingot offers but considering the low buying interest we sell in lower or previous rate,” said a TMT manufacturer based in Raipur.

Raigarh prefer over Raipur by TMT Trader based in M.P

“Raipur majorly supply TMT to nearby state in which Madhya Pradesh is a major buyer. But considering the viability, buyers diverted to Raigarh. Raigarh TMT is available in lower prices by INR 800-1,000/MT FOR Indore comparison to Raipur TMT,” said a trader based in Indore.