All’s not lost for the long steel mills having seen softening of prices recently. It is learnt that despite higher production last year of TMT by SAIL the scheduled maintenance at Durgapur and Bhilai steel plant will lead supply shortage.

It is learnt that there is acute shortage of TMT in 8-16 mm whereas abundance in 25 mm to 32 mm in the Northern region causing mills to mull hike in prices by INR 700 per tonne to 1000 per tonne in May. TMT prices have remained firm since March on traction by high scrap and pencil ingot price levels.

However recently there has been some correction after collapse in pencil ingot price levels. It is likely to be short lived and buying and prices are likely to pick up next month after the elections when the activity picks up.

At present, 12mm TMT price range INR 42000 per tonne to 45,000 per tonne (incl taxes) at most locations with the sole exception of Chennai where it is INR 49000 per tonne owing to pre monsoon buying pressure.