The year 2025 has started with some unusual signals inside India’s industrial ecosystem. Two major manufacturing pillars — HVAC (Heating, Ventilation & Air Conditioning) and Agricultural Equipment — are showing a noticeable decline in demand.
While these sectors may seem unrelated to housing projects or civil structures, the impact of this slowdown travels across the entire steel supply chain, eventually affecting TMT bar prices, construction budgets, and procurement strategies.
This article breaks down what’s happening, why it matters, and how contractors, developers, and procurement managers can stay ahead during this market shift.
🔵 1. What’s Causing the Drop in HVAC & Agricultural Equipment Demand in 2025?
A. Oversupply after Post-COVID Manufacturing Boom
Between 2021–2024, industries ramped up production expecting long-term growth.
But when consumer demand normalized:
HVAC units began to pile up in inventory
Tractor & agri-machinery sales slowed due to stable crop cycles
Distributor channels became overstocked
Lowered manufacturing output means less steel consumption, particularly for:
✔ Structural tubes
✔ Coils
✔ Sheets
✔ Wire rods
🔵 2. Why This Decline Matters for the Steel Industry
When two major steel-consuming sectors reduce orders, the immediate impact is:
More steel available in domestic supply
Lower short-term demand pressure
Price fluctuations in semi-finished products
This indirectly influences construction steel markets including:
TMT Bars
TMT Bar Prices (detailed list here: https://aplapollosgtmt.com/tmt-price-list/)
Binding Wire
Fasteners
MS Welding Rods
Even though construction remains strong in India, the imbalance in other sectors creates temporary pricing dips, followed by corrections.
🔵 3. How the HVAC Slowdown Impacts Construction Steel
HVAC systems use significant quantities of:
Galvanized steel
High-grade steel sheets
Refrigeration-grade metal components
When their demand reduces, steel mills redirect production capacity to construction-grade materials, making it easier for builders to source:
👉 TMT bars — https://aplapollosgtmt.com/tmt-bars/
👉 Binding wires — https://aplapollosgtmt.com/ms-binding-wires/
👉 Fasteners — https://aplapollosgtmt.com/fastener/
This increases material availability and may create price stability in the short term.
FAQs: Steel Industry and Manufacturing Demand 2025-26
The HVAC industry is facing reduced orders due to slower real-estate expansion, rising material costs, and delayed commercial projects. This has directly lowered steel consumption in components such as ducts, brackets, and frames.
Tractors, tillers, and machinery saw fewer purchases in 2025 due to uneven monsoons and tight rural financing, resulting in lower demand for steel plates, bars, and fabricated parts.
Yes, reduced manufacturing consumption can stabilize or soften raw material prices, indirectly affecting TMT bar pricing. However, construction demand remains strong, preventing a major fall.
Construction-grade materials like TMT bars, binding wire, fasteners, and structural steel remain stable due to ongoing infrastructure and housing projects across India.
No major shortages are expected. While some manufacturing segments have slowed, steel mills continue to operate steadily due to strong demand from the construction and transportation sectors.
🔵 4. Agricultural Equipment Slowdown & Its Hidden Steel Impact
Farm equipment relies heavily on:
Wire rods
Flat steel
Forged steel components
Fasteners & weld-grade materials
A decline in tractor and machinery production shifts steel allocation toward construction.
But here’s the twist:
Construction steel (TMT) isn’t immediately cheaper
Because raw-material constraints (iron ore logistics, coking coal imports, scrap volatility) still impact steel producers.
Thus, we’re seeing:
📌 Stable TMT bar prices, not major drops
📌 Regional price variations, especially during peak construction seasons
📌 Increased demand for high-strength TMT bars in real estate and infrastructure
Check updated rates here:
TMT Bar Price List Today → https://aplapollosgtmt.com/tmt-price-list/
🔵 5. What Contractors Should Expect in 2025
A. More predictable pricing (Q2–Q3 2025)
The slowdown in HVAC & agri-equipment helps balance domestic steel supply.
B. Strong demand for construction materials
Thanks to:
Housing & redevelopment projects
Infrastructure push (Bharatmala, Vande Bharat rail corridors, Metro expansions)
Private warehousing & industrial construction
C. Increased preference for branded TMT bars
With fluctuating raw material prices, builders prefer trusted brands to avoid structural risk.
Explore APL Apollo’s TMT range:
👉 https://aplapollosgtmt.com/tmt-bars/
🔵 6. Why Choose Quality TMT Bars Despite Market Shifts?
Even if other industries slow down, construction must maintain structural integrity.
High-quality FE500 / FE550 TMT bars ensure:
✔ Better earthquake resistance
✔ Superior tensile strength
✔ Longer lifespan
✔ Safety compliance for high-rise structures
Budget TMT is never worth the long-term structural risk.
🔵 7. Supporting Materials Also See Steady Demand
Regardless of sector slowdown, every construction project still needs:
Binding Wire
For strong RCC bonding
→ https://aplapollosgtmt.com/ms-binding-wires/
Welding Rods
For joining steel structures, gates, fabrication
→ https://aplapollosgtmt.com/ms-welding-rod/
Fasteners
Used in steel structures, roofing, and fabrication
→ https://aplapollosgtmt.com/fastener/
🔵 8. Final Verdict: What 2025 Means for Builders & Steel Buyers
Even though HVAC and agricultural machinery sectors are witnessing a slowdown, construction remains India’s most stable steel consumer.
Builders should use this phase to their advantage:
⭐ Secure materials early
⭐ Monitor TMT bar prices weekly
⭐ Choose branded TMT bars for safety
⭐ Source from consistent suppliers
The steel market is entering a more predictable phase, but smart procurement will still define project success.
