Effect of upcoming monsoon has witnessed across the country. Trading activity at few places remain slow, whereas few traders witness good sales. However, most traders believe that prices may correct further.
Secondary TMT market that was dull from last 15 days due to intense heat, which creates labor shortage, now seen some trigger as prices back to the same level as it was before the news of the closing of 26 Iron ore & Manganese mines.
Prices of finish long products, especially TMT Re-bars & Wires have declined by almost INR 1,500/MT in last 15 days in most of the cities. Market players are still not expecting any upward movement due to monsoon ahead.
A native manufacturer of Madhya Pradesh said, “There is no upside for next 2-3 months because of monsoon. However, we had raised our prices by INR 500/MT for short term as we had received a little pre-monsoon demand, but it has corrected again.”
“Cement strike from last 8-10 days has halted the construction in Maharashtra, which resulted in low buying of TMT. Continuation of strike may result in downfall of INR 500-700/MT,” said a trader based at Jalna.
While, Hyderabad based a TMT manufacturer also told about hike in cement prices upto INR 120/bag.
According to a native trader of Raipur, “Demand has reduced by 50-60% from local and nearby states. Stockiest are unwilling to stock as they have also run out of demand from consumer side. If this situation will prolong, offers may come down by INR 400-500/MT.”
However, the primary producers especially SAIL is facing shortage of finished products in North India. In contrary, traders, MoU holders & stockiest believe that prices may correct as project sales remain low.
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