- Material shortages support higher BF trade prices
- Project demand remains strong ahead of FY closing
Trade-level blast furnace (BF) rebar prices increased w-o-w, as major steel mills raised list prices by INR 500-1,000/tonne (t) ($6-12/t) during the week. Post revision, list prices hovered in the range of INR 54,500-55,500/t ($637-649/t) on landed basis, BigMint heard from sources. It should be noted that mills had also announced interim price increases previously during the month.
The market is experiencing limited material availability due to supply disruptions from mills, leading to higher quotations in the distributor network. According to sources, certain material sizes are currently out of stock, which has further tightened supply.
Trade-level BF rebar prices increased by INR 1,000/t ($12/t) w-o-w to INR 56,000/t ($655/t) exy in Mumbai, as per BigMint’s assessment on 28 March 2025. Prices are exclusive of GST at 18%.
In the projects segment, prices hovered at around INR 54,500-55,500/t ($637-649/t) FOR Mumbai. End-user demand has been consistently strong for some time, with active procurement observed as project completion deadlines approach before the financial year’s closure.
Update on projects
- NCC Limited received a letter of acceptance (LOA) from Bihar Medical Services and Infrastructure Corporation Limited for the redevelopment of the Darbhanga Medical College and Hospital at Laheriasarai, Darbhanga, with a contract value of INR 1,480.34 crore. The project is to be completed in 42 months.
- Kalpataru Projects International Limited (KPIL) and its international subsidiaries secured orders worth INR 2,366 crore. The new orders include projects in the transmission and distribution (T&D) sector across India and international markets, along with a building and factories (B&F) order in India.
- NCC Limited received two major advance work orders from BSNL for designing, constructing, and maintaining Bharat Net’s middle mile network in Uttarakhand and Madhya Pradesh and the Dadra and Nagar Haveli and Daman and Diu (DNH & DD) Telecom Circles, valued at INR 10,804.56 crore.
- Larsen & Toubro (L&T) has secured its largest-ever contract from Qatar Energy LNG for the North Field Production Sustainability Offshore Compression Project. The contract involves engineering, procurement, fabrication, installation, and commissioning of offshore compression complexes, strengthening L&T’s global energy portfolio and supporting Qatar’s energy objectives.
Factors behind market dynamics
1. IF rebar prices range-bound w-o-w: Induction furnace (IF) rebar trade prices remained range-bound w-o-w across markets. Buying activity was limited to need-based purchases, which kept market sentiment weak, and mills received fewer orders at higher prices. Inventory idling time stood at 7-8 days, with no selling pressure. As per BigMint’s assessment, IF rebar prices were at INR 49,400/t exw-Mumbai on 28 March 2025, stable w-o-w.
The BF-IF rebar price gap increased to INR 6,500-7,000/t ($76-82/t) in Mumbai, where IF rebars hold a dominant 65-70% market share.
2. Iron ore prices stable, coking coal drops w-o-w: BigMint’s Odisha iron ore fines (Fe 62%) index held firm w-o-w at INR 5,100/t ($60/t) on 22 March. The Odisha iron ore market remained stable, supported by the results of the Odisha Mining Corporation (OMC) auction, while supply from other miners was limited due to expired environmental clearance (EC) limits. Buyers relied on OMC auctions to meet their material requirements.
Australian premium hard coking coal (PHCC) prices dropped by $10/t w-o-w to $184/t CNF Paradip.
Outlook
Market participants expect prices to remain firm in the coming days due to limited availability. Additionally, mills have hinted at an increase in their list prices for April dispatches.
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