TMT Demand Set for Strong Rebound on Rising Construction Momentum

Key Highlights

• Flat steel prices across Mumbai, Delhi NCR, and Vizag remain firm
• Distributors maintain balanced inventory amid weak seasonal demand
• India becomes a net finished steel exporter in October
• PLI Round 3 and major industry investments indicate future capacity growth

Flat Steel Prices Hold Firm in Key Trading Hubs

• Ex-Mumbai: ₹46,500 – ₹47,000 / ton
• Ex-Delhi NCR: ₹47,000 – ₹47,500 / ton
• Ex-Vizag: ₹44,000 – ₹44,500 / ton

Distributors across the North, West, and South regions continue to maintain steady pricing. These levels reflect measured stability and consistent trading activity, without aggressive fluctuations.

Demand & Supply: Muted Demand Keeps Distributors Cautious Post-Monsoon

Market sentiment remains cautious. Seasonal sluggishness following the monsoon continues to weigh on demand, prompting sellers to maintain current prices rather than introduce deeper cuts.

Distributors are keeping inventory levels balanced — sufficient to meet ongoing requirements while avoiding excess stock. Mills, meanwhile, appear to be aligning their output with softer offtake, preventing significant inventory buildup on the production side.

News: India Turns Net Steel Exporter as Imports Drop Sharply

• India becomes a net exporter of finished steel in October:
  Government data shows exports of 0.6 million tons — up 44.7% YoY — while imports declined to 0.5 million tons, down 55.6% YoY.
• PLI scheme for speciality steel receives renewed momentum:
  Round 3 of the Production-Linked Incentive (PLI) scheme aims to attract ₹44,000 crore in new investments.
• Rashmi Group announces ₹10,000 crore investment:
  The group plans to set up a 2.8 MTPA integrated steel plant and a 400 MW captive power plant in Purulia, West Bengal, under “ultra-mega” project status.
• TMT demand expected to rise:
  According to Tata Steel’s VP (Long Products), TMT rebar demand is likely to grow over the next 3–4 months on the back of construction, infrastructure, and housing activity.

Expert Opinion: PLI Scheme and New Investments Strengthen Long-Term Outlook

The market remains cautious in the short term. Distributors are managing inventory prudently, avoiding oversupply while observing steady price behavior from major mills. Unless demand deteriorates further, the scope for additional price cuts remains limited.

However, the long-term outlook is strengthening. Government initiatives such as the PLI push, rising exports, and new capacity investments are expected to support a meaningful rebound once construction activity picks up decisively.