Thermo-Mechanically Treated (TMT) rebar prices have dropped to approximately ₹50,000 per tonne, marking the lowest level in about six months. According to reports from BigMint, blast furnace route rebar prices have corrected sharply and reached this six-month low. The current pricing represents a significant decline from the previous low witnessed in December when TMT rebar prices were around ₹49,000 per tonne.
The primary driver behind the price decline is weak demand during the ongoing monsoon season, when construction activity typically slows across most of the country. As reported by BigMint, heavy rainfall has disrupted construction work across many states, reducing demand for steel rebars. Road construction, bridge works, pipeline laying, and other government and private infrastructure projects have slowed due to weather-related disruptions.
The report identifies several factors contributing to the price pressure. Developers and contractors are purchasing only what is immediately required instead of stocking up, putting further pressure on prices. Mills and traders continue to hold ample inventories, creating excess supply in the market. This inventory buildup has contributed to the sustained correction in rebar prices.
Industry analysts expect prices to remain subdued for the rest of the monsoon season. According to BigMint, a sustained recovery is likely to depend on the resumption of construction projects and stronger demand from the housing and infrastructure sectors once weather conditions improve. However, if demand remains weak even after the monsoon, prices could stay subdued for a longer period. TMT rebars are the primary steel reinforcement bars used in residential, commercial, and infrastructure construction, with their prices closely watched as they influence the cost of housing, roads, bridges, and public infrastructure projects.
