TMT Prices Dip Further as Demand Stalls; Tata Steel Expands Capacity

Key Highlights

• TMT prices drop by ₹500–1,000/ton across major regions amid soft demand.
• Distributors maintain sufficient inventory; no supply issues reported. 
• Tata Steel expands Kalinganagar plant capacity from 3 to 8 MTPA. 
• Buyer sentiment remains weak, putting further downward pressure on prices.

Steel Prices: TMT Price Correction Across Regions

• Ex-Mumbai: Rs. 56,000- 56,500/ton 
• Ex-Delhi NCR: Rs.56,500 - 57,000/ton 
• Ex-Vizag: Rs. 53,000- 53,500/ ton  

Note - Distributors across North, west and south has decreased the prices.. Above pricing is based on the same.

Demand & Supply: Demand Flat, Buyer Sentiment Weakens Further

• Overall inquiry levels last week had held steady, indicating that market demand remains relatively unchanged, with no clear signs of growth or decline. Reflecting the broader market environment, prices have continued their downward trend, highlighting ongoing softness within the sector.
• From a supply standpoint, sellers are adjusting to the muted demand by adopting more aggressive pricing strategies. At the same time, distributors are holding sufficient stock, ensuring consistent product availability and minimizing the likelihood of any supply chain issues.

Primary TMT News: Tata Steel Boosts Odisha Capacity to 8 MTPA

• Chief Minister of Odisha Mohan Charan Majhi on Thursday, May 22, 2025, inaugurated the expanded Tata Steel Kalinganagar (TSK) plant, taking the crude steel capacity from 3 to 8 million tonnes per annum (MTPA).
• The inauguration event was held at the Kalinganagar plant in Jajpur district, in the presence of senior state leaders, members of the local community, Tata Steel’s CEO & MD T. V. Narendran, and other members of the senior leadership. The expanded state-of-the-art facility marks a significant milestone in the Company’s journey to build a future-ready steel manufacturing ecosystem anchored in sustainability, technology, and inclusive growth.
• It is a massive jump in capacity at TSK, with a total investment of more than Rs 50,000 crore incurred in two phases.

Expert Opinion: Softer Prices Likely if Weakness Persists

• Due to a noticeable drop in demand, manufacturers have implemented deeper price cuts on a case-by-case basis. If this weak demand trend continues, prices are likely to face additional downward pressure in the coming week. The slowdown is apparent in both primary and secondary markets, indicating a broad-based decline in purchasing activity and a more reserved stance from buyers.
• On the supply side, conditions remain steady. Distributors currently hold ample inventory to meet current needs, with no signs of shortages or logistical challenges. At the same time, production facilities are seeing a reduced flow of new orders, implying that supply is well-matched to the lowered demand levels and that there are no immediate threats of supply disruptions or inventory shortfalls.