Primary TMT Prices Slip Further as Demand Stagnates

Key Takeaways

• Prices Slide Across Regions: Primary TMT prices fell in Mumbai, Delhi, and Vizag, reflecting soft demand and distributor adjustments.
• Demand Remains Subdued: Market inquiries held steady, but buying momentum continues to lag across core and fringe sectors.
• Supply Stable for Now: Distributors are well-stocked, and no major logistical or supply issues have been reported.
• Global Trade Uncertainty: Trump’s tariff hike announcement has introduced volatility into global steel markets and hurt Indian stock performance.
• Outlook Signals Further Pressure: With low order inflow and persistent caution, more price drops are likely in the coming week.

Primary TMT Prices

• Prices are as follows :
  a. Ex-Mumbai: Rs. 55,000- 55,500/mt 
  b. Ex-Delhi NCR: Rs.55,500 - 55,750/mt 
  c. Ex-Vizag: Rs. 52,500- 53,000/mt 

Note: Distributors across North, West and South have decreased the prices. Above pricing is based on the same.

Primary TMT Demand & Supply

• Inquiry activity remained stable over the past week, suggesting that overall market demand has not significantly shifted in either direction. Consistent with the general market conditions, pricing continued to decline, pointing to persistent weakness in the sector.
• On the supply side, sellers are responding to subdued demand with more competitive pricing tactics. Meanwhile, distributors are maintaining adequate inventory levels, which is helping to ensure steady product availability and reducing the risk of disruptions in the supply chain.

Primary TMT News

• Metals stocks declined sharply on Monday, June 2, following U.S. President Donald Trump’s announcement to double tariffs on imported steel from 25% to 50%, effective June 4, 2025. The move, revealed at a rally at U.S. Steel in Pennsylvania, triggered a 0.8% fall in the Nifty Metals Index, with JSW Steel, Tata Steel, and SAIL dropping 1.5–2%.
• The tariff hike is expected to further strain global trade ties, especially with China and the EU. The EU criticized the decision, warning of retaliatory measures if no agreement is reached by July 14. This escalation adds uncertainty for global steel producers and could impact international supply chains and pricing.

Expert Opinion

• With demand tapering off noticeably, producers have started applying more significant price reductions selectively. Should this sluggish demand persist, additional price declines may follow in the coming week. The downturn is evident across both core and peripheral markets, signalling a widespread pullback in purchasing and increased caution among buyers.
• On the supply front, conditions remain stable. Distributors have sufficient stock to meet current demand, and there are no immediate concerns around supply shortages or transportation issues. Meanwhile, manufacturers are receiving fewer new orders, suggesting that production levels are closely aligned with the softer demand, reducing the likelihood of overstock or disruptions.