Most often we see that the prices of TMT bars keep on fluctuating on a daily basis. There is no one constant factor that might keep the price of the bars steady for long, the variation could be due to a number of factors that directly or indirectly affect the price of TMT rebars.
Here we have listed a few important factors, due to which the market price of TMT steel bars might fluctuate,
- Transportation Cost
- Demand & Supply of Steel
- Seasons decide the price
- Cost of Energy & Power
The per kg transportation cost of TMT bars includes the cost accommodated while carrying the TMT bars from the factories to the construction sites. The charges of the transport vehicles vary depending on the type of vehicle. Total cost must also include the time of transit and safety.
Demand & Supply of Steel
The demand and supply factor hugely impacts the prices of TMT bars. If the demand for raw materials used in the making of TMT steel bars is high and the supply is less this might increase the price of the bars. Similarly, with supply being more and demand more petite, the price of TMT steel goes down. This factor might be the significant reason why the prices of steel bars might vary greatly.
Seasons decide the price
As weird as it may sound, seasons and weather do have a significant effect on the price of the TMT bars, if the seasons favor a good demand for construction inputs, the market prices at that time might be high. Similarly, if there is an off-season, the construction demands are low, the price of TMT will eventually go down.
Cost of Energy & Power
The energy and power costs acquired in the manufacture and production of TMT bars indirectly affect the price of the bars. Since there is a greater need for electricity in the production process of steel bars, most of the top steel manufacturers are now switching to solar power to minimize the cost accommodated while using electrical power.
The above-mentioned factors affect the reason why the cost of TMT bars tends to fluctuate more often. To have a sound knowledge of how the prices vary according to time, keep an eye on the top market distributors, dealing in TMT steel bars, and get a product proposal from their website before actually having to visit the offline market to seal the deal.