Steel Prices Slide Further Amid Weak Demand and Stable Supply

Key Highlights

• Domestic prices dropped by ₹250–₹500/ton across key regions.
• Distributors maintain steady stock levels amid soft offtake. 
• Tata Steel receives ₹1,007 crore GST demand notice over ITC irregularity
• Further price correction expected if demand remains subdued.

Domestic Price Trends by Region

• The current market prices for the material are as follows: Ex-Mumbai rates are in the range of Rs. 51,000 to Rs. 51,250 per ton, while in the Delhi NCR region, prices are slightly higher at Rs. 51,250 to Rs. 51,750 per ton. 
• Meanwhile, Ex-Vizag prices are relatively lower, ranging from Rs. 48,000 to Rs. 48,500 per ton. These revised rates reflect a broader trend of price reductions by distributors across the North, West, and South regions.

Demand-Supply Conditions Remain Weak but Balanced

• In line with overall market conditions, prices continued to decline, reflecting persistent weakness in the sector.
• On the supply side, sellers are reacting to soft demand by offering more competitive prices. 
• Distributors, meanwhile, are keeping inventory levels stable, ensuring steady product availability and reducing the likelihood of supply chain issues.

Market News: Tata Steel Faces GST Demand

• Tata Steel received a show-cause notice along with a tax demand from the Officer of Commissioner (Audit) of Central Tax, Ranchi, on 27 June 2025, alleging an input tax credit (ITC) irregularity in the period between financial year 2018-18 to 2022-23 fiscal, according to an exchange filing.
• The BSE filing on Sunday, 29 June 2025, showed that the Officer of Commissioner (Audit) of Central Tax, Ranchi, imposed a tax demand of over ₹1,007.54 crore ( ₹1007,54,83,342) for the period between the financial year 2019-19 to the 2022-23 fiscal years.
• However, the steelmaker also said that the company has already paid a GST of ₹514.19 crore in the normal course of its business operations, and out of the above-mentioned amount, the proposed GST payment will be ₹493.35 crore due to the alleged exposure in the input tax credit (ITC) irregularity.
• The BSE filing data shows that the company is required to prove the cause of the allegation in front of the Additional or Joint Commissioner of Central GST and Central Excise of Jamshedpur, Jharkhand, within 30 days of receiving the notice.

Expert Opinion: Further Softening Likely if Demand Fails to Recover

• As demand continues to weaken, producers are increasingly offering more significant price cuts, though selectively. If this sluggish demand trend continues, additional price reductions are likely in the upcoming week. The slowdown is evident in both primary and secondary markets, signaling a widespread decline in buying activity and growing caution among consumers.
• On the supply front, conditions remain steady. Distributors have sufficient stock to meet current needs, with no immediate risks of shortages or logistical issues. Meanwhile, manufacturers are receiving fewer new orders, suggesting they are adjusting production levels to match the lower demand. This approach helps prevent overstocking and avoids disruptions in operation.