TMT Prices Ease Amid Sluggish Demand; Supply Remains Stable

Key Highlights

1. TMT prices dropped by ₹500-₹1,000/ton across North, West, and South India.
    
2. Market demand remains stagnant; no significant rise in inquiries reported.
    
3. Supply conditions steady with ample inventories at distributor levels.
    
4. Aditya Ultra Steel invests ₹15.35 crore in a 5,000 KWP captive solar plant in Rajkot.

Price Reductions Observed Across Key Regions amid Weak Market Sentiment

Prices are as follows :

• Ex-Mumbai: Rs. 57,000- 57,500/ton 
• Ex-Delhi NCR: Rs.57,500 - 58,000/ton 
• Ex-Vizag: Rs. 54,000- 54,500/ ton  

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

Stable Supply but Demand Stagnation Continues

Inquiry volumes have remained consistent with the previous week, indicating that market demand is currently experiencing a period of stagnation. In response to broader market dynamics, pricing levels have been revised downward, reflecting a softening trend across the sector. On the supply side, conditions remain stable. Distributors are holding sufficient inventory, ensuring that material availability continues to meet current demand without disruption.

AUSL Enhances Sustainability New Solar Plant Investment

Aditya Ultra Steel Ltd (NSE – AUSL) – Leading company engaged in the business of manufacturing rolled steel products i.e. TMT bars under the brand name ‘Kamdhenu’ in a bold stride toward sustainability and self-reliance has announced a significant investment in renewable energy a 5,000 KWP Solar Captive Power Plant aimed at powering its operations with clean, green energy. The company was listed on the NSE –SME exchange on 16th September 2024

The company is installing a solar power plant with a capacity of 5,000 KWP at Jasdan, Rajkot, aimed at significantly meeting the company’s energy needs while enhancing sustainability and reducing exposure to electricity price fluctuations, investing Rs. 15.35 crore.

This move comes as part of the company’s strategy to reduce its carbon footprint, optimize energy costs and future-proof operations in line with global climate goals. Once operational, the plant is expected to significantly reduce reliance on grid power making the production of steel bars not just strong, but sustainable.

Expert Opinion: Further Price Correction if Demand Weakness Persists

In reaction to this softened demand, manufacturers have implemented moderate price reductions relative to early May. Should this subdued demand trend continue, the market is likely to witness additional price declines in the coming week. Market demand has weakened appreciably across both primary and secondary segments, signaling a broad-based slowdown in buying activity On the supply front, conditions remain steady distributors are maintaining healthy inventory levels, and production facilities are receiving only a limited flow of new orders, suggesting no immediate concerns regarding material availability.