Chennai-Based Secondary TMT Mills Raise Gauge Differentials Amid Rising Costs

Chennai-Based Secondary TMT Mills Raise Gauge Differentials Amid Rising Costs

Secondary TMT mills in Chennai have revised gauge differentials on selected reinforcement bar sizes, effectively increasing the selling price for buyers procuring specific diameters. The latest changes come as mills face higher raw material, production and conversion costs, adding to the overall cost of TMT steel procurement in the regional market.

Under the revised pricing structure, 10 mm, 12 mm and 16 mm TMT bars now carry an additional gauge differential of ₹1,000 per tonne. For 32 mm bars, the differential has been increased to ₹1,500 per tonne, while the additional charge for 8 mm bars stands at ₹2,500 per tonne.

The revisions are applicable to selected bar sizes, while the basic rates for 20 mm and 25 mm bars remain without a gauge differential under the latest structure. This creates a varying effective price depending on the diameter of TMT bars being purchased.

In addition to the revised gauge differentials, a loading charge of ₹400 per tonne is also applicable. Buyers will need to account for this charge along with the applicable 18% Goods and Services Tax (GST) while calculating the final procurement cost.

The changes are particularly relevant for construction companies, contractors, distributors and steel traders sourcing TMT bars from secondary mills in and around Chennai. Since reinforcement steel is a key component in residential, commercial and infrastructure construction, even relatively small changes in per-tonne costs can influence project procurement budgets.

Gauge differentials are commonly used in the TMT market to adjust pricing between different bar diameters. Smaller-diameter bars can attract higher differentials because of the additional processing and conversion requirements involved in producing them.

The latest revisions indicate continued pressure on effective TMT selling prices in the Chennai market. For buyers, the impact will depend on the mix of bar sizes required for individual projects and the prevailing basic TMT rates offered by mills.

With raw material and production costs remaining important factors in steel pricing, further changes in gauge differentials could influence procurement decisions across the construction supply chain. Market participants are therefore likely to closely track mill-level price revisions and their impact on delivered TMT costs in the coming days.