Steel Prices Slide on Weak Demand, Outlook Bearish

Key Highlights

• Prices dropped across Mumbai, Delhi NCR, and Vizag markets.
• Sellers cut prices to stay competitive amid weak demand.
• Ministry of Steel emphasized secondary sector growth and green steel push.
• Further price cuts expected if sluggish demand persists.

Steel Prices Slide Across Key Regions

• Ex-Mumbai: ₹46,500 – 47,000/ton
• Ex-Delhi NCR: ₹48,000 – 48,500/ton
• Ex-Vizag: ₹45,500 – 46,000/ton

Note: Distributors across North, West, and South India have decreased prices. The above pricing reflects this adjustment.

Weak Demand Pressures Sellers to Lower Offers

• Prices have continued to fall in response to broader market trends, highlighting ongoing weakness in the sector.
• To address sluggish demand, sellers are reducing prices to stay competitive. At the same time, distributors are maintaining consistent inventory levels to ensure availability and prevent supply chain disruptions.

Government Workshop Highlights Secondary Sector & Green Steel

• The Ministry of Steel organized a comprehensive workshop on the issues facing secondary steel industries to address key challenges and opportunities. 
• The event brought together representatives from major industry associations, including the Material Recycling Association of India (MRAI), Sponge Iron Manufacturing Association (SIMA), All India Induction Furnaces Association (AIIFA), Chhattisgarh Sponge Iron Manufacturing Association (CGSIMA), and Pellets Manufacturers Association of India (PMAI), along with policymakers, steel producers, experts, and industry partners.
• Union Minister of Steel H.D. Kumaraswamy emphasized the sector’s role as the backbone of industrial regionalization, contributing significantly to employment and economic growth. He reiterated the national target of 500 million tonnes (MT) of steel production by 2047 and highlighted India’s ambition to lead globally in low-carbon steel.
• Key initiatives such as the Steel Collaboration Portal under the Steel Research and Technology Mission of India (SRTMI) and the Green Steel Taxonomy were also showcased. In FY25 (April–February), finished steel production stood at around 140 MT.

Market Outlook: Further Price Reductions Likely

• As demand continues to decline, producers are introducing larger but targeted price reductions. If weak demand persists, further price cuts are expected in the coming weeks. The slowdown is evident across both primary and secondary markets, reflecting a broad decline in purchasing activity and heightened consumer caution.
• On the supply side, conditions remain stable. Distributors hold adequate inventories to meet current demand, with no immediate concerns about shortages or logistics. However, manufacturers are seeing a drop in new orders, prompting them to scale back production in line with reduced demand. This strategy helps avoid excess inventory and ensures smoother operations.