Steel Prices in Chennai per kg/ton Today (2025)

The steel market in Chennai has shown fluctuating trends throughout 2024, influenced by factors such as global economic conditions, raw material costs, and regional demand patterns. As one of the main industrial hubs in South India, Chennai's steel prices are closely tied to infrastructure developments, industrial activities, and global steel trends.

Steel Price by Product

Below is a table reflecting the current steel prices by product such as TMT Bars and other category in Chennai:

These prices are updated monthly and reflect recent trends in raw material costs and demand fluctuations.

Monthly Steel Price Trend for 2024 - 2025

Steel prices in Chennai exhibited a slight upward trend throughout 2024, peaking during the summer months due to increased construction activity.

Last 4-Year Steel Price Trend

The data shows a strong price surge in 2021 and 2022, driven by post-pandemic recovery, followed by relative stabilization in 2023 and 2024.

Steel Price Predictions & Financial Forecasts

Market Analysis & Trends

1. 2024 Price Decline: Chennai's steel market is expected to see a 3-4% decrease in average prices in 2025 compared to 2024, driven by reduced domestic demand and global supply chain disruptions.

• Key Drivers: Post-election decline in government infrastructure spending and rising imports from China are the primary reasons for this price correction.
• China’s Influence: China's steel exports surged by 79.8% in 2023, putting immense pressure on Indian steel producers.

2. Demand & Supply:

• Domestic Demand: Steel consumption in India is projected to grow at a slower rate of 7-8% in FY2025, compared to 12-13% in FY2024, indicating weakened infrastructure activity.
• Global Supply Chain: International supply chain issues, coupled with China's aggressive exports, will continue to weigh down prices.

Financial Forecasts for 2025:

1. Profitability: Indian steelmakers are expected to face a 110-115 basis points decline in operating profits due to increasing input costs (iron ore, coking coal) and a decrease in domestic demand.

• Industry Leverage: Debt-to-operating profit ratios are likely to increase from 2.0-2.5x in FY2024 to 2.5-3.0x in FY2025.
• Import Pressure: India may continue as a net importer of steel in 2025, as local production is challenged by cheaper imports.

Key Data Highlights:

• Price Prediction for 2025: Steel prices are likely to stabilize around ₹71,500-72,500/MT for products like TMT Rebars, with marginal decreases expected in Hot Rolled Coils and GI Sheets.
• Raw Material Costs: Iron ore and coal prices will likely remain volatile, though the impact on local prices will be limited due to weaker demand.

Financial Implications:

1. Capex Hesitation: Domestic producers are expected to be cautious with capital expenditures due to uncertain profit margins and volatile market conditions.
2. Export Challenges: Weak global demand and geopolitical tensions could limit export opportunities, increasing competition within the domestic market.

How to Procure Steel at Low Prices in Chennai

1. Bulk Purchasing: opt for buying in bulk to secure discounts. Many suppliers offer price breaks when larger quantities are purchased, especially for long-term projects.

2. Timing the Market: Monitor market fluctuations and purchase during periods of low demand, such as off-peak seasons or when large infrastructure projects are completed.

3. Negotiating with Local Suppliers: Build relationships with local steel suppliers and negotiate based on volume and repeat business. Suppliers are often more flexible on pricing for loyal or frequent customers.

4. Compare Prices: Always compare quotes from multiple suppliers. Platforms like IndiaMart or TradeIndia list multiple steel dealers in Chennai, making it easier to identify competitive pricing.

5. Tata nexarc: For businesses looking to streamline procurement, Tata nexarc offers an online marketplace where you can source steel directly from verified suppliers. With flexible payment options and competitive pricing, it helps ensure cost-effective procurement for any project size.

Unlock the power of credit to buy quality steel with Tata nexarc

To secure steel at the best prices in Chennai, it is essential to stay informed about market trends, bulk purchase opportunities, and competitive supplier pricing. By negotiating with local suppliers and leveraging platforms like Tata nexarc, businesses can optimize procurement strategies, ensuring cost efficiency without compromising on quality. Whether for large infrastructure projects or regular use, using these methods will help maintain a balance between cost control and project demands.

Disclaimer: Prices are indicative and subject to change. Buyers are requested to contact our team at Tata nexarc for latest TMT bar price range available from different manufacturers, suppliers, wholesalers. For more details on TMT bar size and grade (e.g., Fe 415, Fe 500, Fe 550, Fe 600) get in touch now. GST + freight additional.