TMT Prices Steady Amid Weak Demand, Monsoon Impact

Key Highlights

• Prices stable: Mumbai ₹46,500–47,000/t, NCR ₹47,000–47,500/t, Vizag ₹45,000–45,500/t.
• Weak demand persists, driven by sluggish sector activity and monsoon impact.
• Essar Steel insolvency case back in NCLT spotlight over compliance issues.
• Producers cautious on price cuts; distributors maintain adequate supply.

Regional Prices: Stability in Mumbai, NCR, and Vizag

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

Note: Distributors across North, West, and South regions have largely maintained stable pricing. The above pricing reflects this consistency.

Demand & Supply: Weak Demand & steady Inventories

• Prices have remained largely stagnant in response to broader market trends, reflecting persistent weakness in the sector as well as the impact of the monsoon season.
• To counter sluggish demand, sellers are keeping prices stable to remain competitive. At the same time, distributors are maintaining consistent inventory levels to ensure product availability and mitigate potential supply chain disruptions.

Industry News: Essar Steel insolvency case revisited

• The Essar Steel insolvency case, once hailed as a milestone under India’s Insolvency and Bankruptcy Code (IBC), is again in the spotlight after fresh applications before the National Company Law Tribunal (NCLT) raised questions over compliance with stamp duty laws and debt assignment rules in transactions linked to ArcelorMittal India (AMIPL).
• The New Delhi bench of the NCLT, on August 29, heard arguments for more than two hours in a case filed by Feedback Highways OMT and Sayam Shares and Securities. The petitioners—creditors to Bhubaneshwar Expressways (a subsidiary of KSS Petron)—alleged that loan assignment agreements executed in October 2018 by AMIPL were not in line with the law.
• According to the application, AMIPL acquired secured debt of ₹1,343.9 crore from banks in the KSS Petron case and ₹4,921 crore in the Uttam Galva Steels matter. The petitioners contend that stamp duty on these transactions was underpaid, with dues far higher than what has been paid. 
• The Collector of Stamps in Maharashtra has issued show-cause notices and ordered production of the agreements, with hearings ongoing under the Bombay High Court’s monitoring.
• Another issue raised is whether AMIPL—without registration as an Asset Reconstruction Company (ARC) or a Non-Banking Financial Company (NBFC)—could legally acquire secured debt under Section 5 of the SARFAESI Act. RBI communication earlier this year confirmed that AMIPL does not hold such licenses.

Expert Opinion: Price cuts limited despite slowdown

• Demand is anticipated to remain sluggish in the near term, with producers likely to continue offering selective price reductions to stimulate buying interest. However, if weak demand persists, the scope for further price cuts may diminish, especially as major manufacturers have yet to revise their prices. Both primary and secondary markets are expected to reflect cautious purchasing behavior and limited trading activity.
• On the supply side, stability is expected to continue, with distributors maintaining sufficient inventory to meet prevailing demand. Manufacturers are likely to keep production aligned with reduced order inflows, helping avoid oversupply and ensuring balanced operations.