- 15 May 25
How Raw Material Prices Influence TMT Bar Price in India
TMT industry in India is a critical sector of the construction sector, providing quality products which are the most fundamental material required for developing infrastructure. One of the primary factors affecting TMT Bar prices is the purchase of raw materials.
Buyers and builders would be able to make better decisions when purchasing TMT bars if they were aware of how the purchase of raw materials could impact prices.
Raw Materials Used in TMT Bars for Construction
The raw materials required for the making of TMT bars for construction are basically three in number: iron ore, scrap steel, and coal. All these raw materials are consumed at different stages in the manufacturing process, right from the melting stage of the raw material in a furnace to the end product, i.e., final TMT bars. The cost of these raw materials will directly influence the price of 8, 10, 12, or 16 mm TMT Bar per kg in different TMT manufactures in India.
Iron Ore
As the key raw material that is used to make steel, iron ore plays a key role in determining the price of TMT bars. Changes in the TMT Bar price of iron ore as a result of local availability or foreign demand affect the price per kg of any type of bars from 8 to 16 mm TMT Bar directly.
Effect of Iron Ore Prices
Iron ore is one of the key commodities employed in the manufacturing of TMT bars for construction, and iron ore price volatility is a key determinant of TMT Bar prices.
India is a major iron ore-producing nation but is prone to domestic and international price volatility. So, the TMT industry in India, consuming a huge quantity of iron ore, has more cost of production, and it is passed on to buyers in the form of a higher 8 to 16 mm TMT bar price per kg.
Scrap Steel
The other raw material of prime necessity is scrap steel, which can be used in electric furnaces. Since India imports a large percentage of scrap steel, the TMT Bar price in India is affected by prices abroad.
Scrap Steel Price Impact
The rates of TMT bars in India often ascend with increase in scrap steel price in other countries for reasons of demand or disruption of supply links, providing direct or indirect effects on TMT bar companies in India.
Coal
Coal is used in the smelting process of the steel using the blast furnace method. A rise in the price of coal can lead to an increase in the rates of TMT bars as they form a part of the cost of production.
Coal Price Volatility
Coal is also a crucial factor since it is used in blast furnaces to melt iron ore. Price fluctuation of coal due to such factors as domestic scarcity or volatility of foreign prices for coal is bound to have a significant effect on TMT bar cost of production. The cost of an 8 or 16 mm TMT bar per kg rises in tandem with the price of coal.
SRMB TMT Steel Price List
SRMB offers following MRP rates for Steel bars for construction :
| Grade | Diameter | MRP Price (₹/kg) |
|---|---|---|
| Fe 550 | 8 mm | ₹76.50 |
| Fe 550 | 10 mm | ₹75.20 |
| Fe 550 | 12 mm | ₹75.10 |
| Fe 550 | 16 mm | ₹75.00 |
| Fe 550 | 20 mm | ₹75.60 |
Conclusion
Raw material costs are one of the most important parameters that determine the cost of SRMB TMT bars. Iron ore prices, scrap steel prices, coal prices, and freight rates all contribute to determining the price of TMT bars.
As a trusted brand, SRMB provide clear price list so that you get to know its current cost. Additionally, this allows builders and consumers to make economical choices without sacrificing quality.
FAQs
There are number of factors that affect the market which increase the price of the TMT bars. Most crucial factors are demand for raw materials, grade, logistics, geography and supply chain. Furthermore it depends on the demand as well.
Based on the new Goods and Tax Bill the current rate of the TMT is 18%. This rate falls under HSN and is consistent throughout the nation. The 18% GST is typically divided as follows, CGST (Central GST): 9% (for local/intra-state sales), SGST (State GST): 9% (for local/intra-state sales), IGST (Integrated GST): 18% (for inter-state sales).
If you are opting for a new home to construct then you have to have knowledge about the price. But this industry has seen a rise over the years than any other sector. You might lose track. To make things easier for you you can check SRMB’s rate card. Here you can track and get a clear picture to make a uniform decision.
If the demand of the world decreases, it may happen. But this has happened very infrequently; rather, the price has remained constant or even increased a little.
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