The current round of correction in TMT price by upto INR1500 per tonne has got little succor to the Indian mills. Expectedly price has declined owing to onset of monsoon in most locations culminating in reduction in construction activity and buying from the projects.

Agony has been compounded this year with rock bottom Chinese offers of long steel increasing inconvenience of the mills. It is reported that for a change this year Chinese mills have been making offers at unbelievable levels of USD 490-495 per tonne CFR India for TMT

Even though the parity is precariously balanced at these levels with a gap of INR 1500 per tonne import bookings have commenced and is expected to gain momentum in the coming weeks. Domestic TMT is available at Mumbai at INR 34500 per tonne (basic excl all taxes) thereby having parity advantage of meager INR 1500 per tonne.

Domestic price levels in China are on the decline it is expected that in the coming weeks even cheaper offers will be aplenty uping the ante on Indian mills.