The Role of Technology in Shaping TMT Steel Prices

Introduction

Steel is important for modern economies, and in recent decades demand has grown to meet infrastructural development and industrial needs. From 2017 to 2022, the global TMT steel bar market experienced remarkable growth. Meeting this demand presents challenges as it aims to be more competitive and sustainable.

The major contributors in the growing demand for TMT steel bars are:

• Residential Buildings
• Commercial Buildings
• Infrastructure Projects
• Manufacturing Industries

As the demand for TMT bars grows, technological innovation and advancements have been implemented to optimize the product’s performance further, making it more widely used in downstream applications.

But how have these improvements affected TMT steel prices in different ways?

Technology has been implemented from the extraction process until it reaches the customers. Let’s look at some of the techniques used in the steel industry and how they have influenced TMT steel prices.

Techniques for Advanced Production

The world’s top TMT steel companies use advanced techniques to improve the consistency and quality of their bars. Some of the techniques include using advanced machinery to automateautomation processes so that the end products are manufactured with precision.

For instance, a temp core water cooling system is used to harden the outer layer of the TMT bar while keeping the inner core soft, resulting in improved corrosion resistance, weldability, and bendability. Improved techniques in production have increased demand for TMT steel bars, which have contributed to decreased prices due to economies of scale.

Micro – Alloy Technology

This is a revolutionary manufacturing technology that has enabled corrosion resistance as well as high strength for TMT bars. Micro-alloying elements like vanadium, niobium, and titanium accomplish this. A further innovation is achieved by adding heat treatment processes and alloy compositions to help achieve durability and enhance mechanical properties.

Micro-alloy technology has led to an increase in demand, specifically in the construction industry, due to improvements in strength and durability.

This directly impacts the TMT steel prices as companies quote higher prices since the technology improves the steel properties.

Thermo Mechanical Treatment (TMT)

This is a key process for manufacturing steel bars, which provide mechanical properties such as ductility and high tensile strength.

Innovations in processes for internal stress elimination and grain structure optimization can lead to better TMT performance.

Also, advanced thermomechanical methods and thermochemical treatments have made it possible to make ultra-high-strength TMT steel bars. Made with quenching, self-tempering, nitriding, and boronising techniques, these bards can withstand high loads and earthquakes.

Also, advanced thermomechanical methods and treatments have enabled the production of ultra-high-strength TMT steel bars for earthquakes and high loads.

Such as

• Quenching and Self-tempering (QST)
• Nitriding
• Bronzing

Prices may change as a result of the TMT steel’s increased quality and performance.

R&D Initiatives

Leading manufacturers have explored new materials, technologies, and processes that can further improve the performance of TMT bars. Collaborations and industry partnerships have taken place to drive innovation and stay ahead in the market. Niche industries may require advanced TMT steel with ultra-high strength. The TMT steel manufacturers make this possible by investing in R&D to come up with new processes and techniques to add the required features.

These initiatives in the long run can also decrease costs and later lower TMT steel prices.

Customization and Support

It is important to address customer needs and provide tailored support for specific projects or technical assistance.

Steel manufacturers use advanced software and technologies to provide quick support.

In the long run, all these factors contribute to customer satisfaction by enhancing long-term partnerships. This leads to a more competitive market, driving down prices for TMT steel. The customised products might cost higher to the buyers as the manufacturers need to focus more on creating the steel bars as per the given specifications.

Industry 4.0 and Digitalization

Leading companies have implemented technologies and solutions to make their operations data-driven.

Several major technologies are utilized to reduce human intervention like

• Advanced PLC Systems
• Evcon Turbo Technology

Other technologies used include IoT (Internet of Things) for monitoring operations in real-time, analytics for optimizing efficiency, quality control, and decreasing downtime.

Let’s take an example now.

The use of smart materials and sensors to monitor the overall health of buildings is an innovation in TMT steel bar technology. These smart TMT steel bars have sensors included that can detect corrosion, cracks, and other flaws, allowing for the early diagnosis and avoidance of structural failures.

Some other environmental conditions can also be measured, such as temperature and strain, that impact the performance of the TMT steel bars.

Another way is to use digital platforms and distribution channels. It enabled the companies to reach a wider range of customers, thereby increasing the demand for TMT steel.

All of this can further improve the competitiveness of the TMT steel manufacturing companies, thereby decreasing the prices for TMT steel.

In terms of automation, which has enhanced the efficiency of the production process, the reduced costs have led to a decrease in prices, therefore allowing sellers to sell the TMT steel on higher profit margins.

Sustainability

Leading companies have innovated through the implementation of recycled steel that can be used to reduce environmental effects tremendously, and there are technologies invested in regularly.

Another method is green steel initiatives through which several methods are used such as the use of renewable energy sources like wind or solar for the production process of TMT bars.

Changes in fuel prices, electricity tariffs, and regulatory policies related to energy consumption can all contribute to cost fluctuations that are ultimately passed on to consumers.

Furthermore, sustainable solutions can lead to a medium-to-high reduction in prices, as raw material and energy costs account for approximately 60–80% of production costs.

Conclusion

While technology and innovation improve the quality of TMT steel in several ways, they may also lead to price changes across the market.

Therefore, it is crucial to know which technologies affect which parts of the production process in the world of TMT steel.