Low inventory and rising demand of TMT across the country are supporting TMT manufacturers to seize the opportunity. TMT offers have shot up by around INR 300-500/MT in a week’s time across major cities.
SteelMint on assessing Finish long market in the country on following parameters have found that –
- Production of Re-bar remains standstill at 12-14 Hours on daily basis
- Demand from housing sector has improved whereas project demand remains absent
- Liquidity Crunch remains at stockiest end
- Shortage of Raw material (Scrap & Ingot) in Northern and Western part of the country remains at same point
- Inventory in major mandi’s at below average level
- North and West India market are supporting high prices.
Northern Region: A TMT manufacturer based at Mandi Gobindgarh said, “Plants are running in 60% of their production capacity owing to shortage of raw material and average demand. However, TMT Re-bar offers rose by INR 300-500/MT W-o-W which is mainly due to Ingot price movement.”
Eastern Region: East India has decent demand from local construction industry. TMT rates have moved up by INR 200-300/MT in a week’s time.
“We are receiving orders above the production which is supporting us to increase offers,” said a TMT manufacturer based at Durgapur.
Central India: Re-bar offers inched up by INR 600/MT in Chhattisgarh while it has gone up marginally by INR 200/MT in Madhya Pradesh.
“Demand is good in the market for the reason that manufacturers have low inventory which is helping them to stay with lucrative offers.”
Raipur based trader
“Ample demand in market on account of good housing constructions made sellers unable to fulfill the orders despite of 100% production,” commented a TMT manufacturer based in Indore.
West India: TMT offers have heightened upto INR 1,000/MT in a week’s time. Prices in Jalna & Mumbai have boosted by INR 500/MT & INR 1,000/MT respectively.
Mumbai based trader said, “Demand is more or less at same levels but with closure of few small mills and few in maintenance have led to price hike.”
Southern Region: In contrary to other regions, Re-bar market has witnessed a down fall of INR 100-300/MT in Hyderabad & Bangalore owing to less construction activities.
A trader based at Bangalore stated, “Low construction activities and increased production have reduced TMT sales in the city. Most of the labors have moved to elections resulting in labour shortage and so on less constructions. Along with this, a few rolling mills have also restarted which were closed earlier.”
Leave a Reply