Ashish Anupam, Vice President of Long Products at Tata Steel Ltd, foresees a substantial surge in the demand for TMT rebars across India in the forthcoming months. This upsurge is chiefly propelled by burgeoning activity in the construction, housing, and infrastructure sectors, marked by a notable increase in new projects nationwide.
Following the culmination of the festive season, a return of workers to their respective roles has catalysed heightened construction endeavours. This post-festive phase is anticipated to significantly contribute to the escalating demand for TMT rebars. With the conclusion of the monsoon season, a conducive environment for construction projects has emerged, fostering an opportune moment for the acceleration of construction activities. The absence of extreme heat during this period further augments favourable conditions for construction work to progress seamlessly.
The continuity and stability observed in government policies have played a pivotal role in bolstering investor and industry confidence. The presence of consistent policies has cultivated an environment conducive to infrastructure development and construction ventures, consequently fueling the escalating demand for TMT rebars.
While the demand for TMT rebars is expected to grow, the prices will be influenced by the cost of raw materials. Market research firm BigMint (formerly SteelMint) reported a decline in TMT prices through blast furnaces from Rs 56,700 per tonne in September to Rs 55,900 per tonne in November. Similarly, TMT rebar prices produced through the induction furnace (IF) route fell from Rs 52,000 per tonne in September to Rs 49,000 per tonne in November. In the fiscal year 2022-23, India’s total steel output reached 123 million tonnes, with TMT bars and rods accounting for 52 million tonnes. The dip in sales observed in November was primarily attributed to some truckers taking a break during Diwali to visit their homes.
RTM Watch’s Take
The projected growth in demand for TMT rebars in the next 3-4 months aligns with the positive outlook for the construction, housing, and infrastructure sectors in India. The post-festive season boost, favourable weather conditions, and consistent government policies are expected to drive the demand for TMT rebars. However, the prices of TMT rebars will be influenced by the cost of raw materials. As the construction industry continues to thrive, it is crucial for stakeholders to monitor the price dynamics and ensure a sustainable supply chain to meet the growing demand for TMT rebars.
