- Bid-offer disparities pressure projects segment
- IF rebar prices decline amid sluggish trade
Trade-level blast furnace (BF) rebar prices declined w-o-w across key Indian markets, driven by subdued demand and weak sentiments. The prevailing uncertainty led market participants to adopt a cautious approach and stay on the sidelines.
Some leading steelmakers cut their list prices, following which these hovered within INR 55,500-56,000/t ($648-654/t) on landed basis, sources informed BigMint.
Trade-level BF rebar prices dropped by INR 300/tonne (t) ($4/t) w-o-w to INR 56,400/t ($660/t) exy-Mumbai, as per BigMint’s assessment on 16 May 2025. Prices are exclusive of GST at 18%
In the projects segment, prices dropped w-o-w to INR 54,500-55,500/t ($637-649/t) FOR Mumbai amid a disparity between bids and offers. End-users procured material for only urgent requirements amid weak market sentiments and expectations of further price drops.
Update on projects
- G R Infraprojects Limited received an advance work order for BharatNet’s middle-mile network development in the Kerala Telecom Circle.
- G R Infraprojects Limited received a letter of acceptance (LOA) for gauge conversion and associated infrastructure works on the Kosamba-Umarpada section of Western Railways.
- NCC received orders worth INR 1,582 crore (excluding GST), including INR 1,001 crore for the building division and INR 581 crore for the transportation division, from state agencies and private firms in April 2025.
- L&T’s Buildings and Factories vertical secured major engineering, procurement, and construction (EPC) orders from the CPWD and the Andhra Pradesh government for constructing Common Central Secretariat buildings in New Delhi and the State Legislative Assembly, with full scope and 18-month execution timelines.
- KEC International Ltd. secured orders worth INR 1,034 crore across the transmission and distribution, civil, and cables sectors. These include a STATCOM project in India, the construction of a semiconductor plant, an upstream project for a steel player, and cable supply across India.
- Kalpataru Projects International Limited (KPIL) and its subsidiaries secured new orders worth approximately INR 2,372 crore in the power transmission and distribution and buildings and factories segments, both in India and overseas.
Factors behind market dynamics
1. IF rebar prices drop w-o-w: Induction furnace (IF) rebar trade prices fell w-o-w amid slow trade activities and limited inquiries. In Mumbai, prices dropped by INR 100/t ($1/t) w-o-w to INR 47,900/t ($560/t) exw on 16 May 2025.
Manufacturers either kept their list prices stable or reduced them and offered discounts due to weak market sentiments. Additionally, inventory holding time stood at around 10-12 days.
The BF-IF rebar price gap stood at INR 8,500-9,000/t ($99-105/t) in Mumbai, where IF rebars hold a dominant 65-70% market share.
2. Raw material prices range-bound w-o-w: BigMint’s Odisha iron ore fines (Fe 62%) index remained stable w-o-w at INR 5,300/t ($62/t) on 10 May 2025, despite facing downward pressure from declining pellet and semi-finished steel tags. Market activity was moderate, with most purchases for immediate requirements. Some buyers adopted a “wait-and-watch” stance amid market uncertainty.
Australian premium hard coking coal (PHCC) prices edged up by $1/t w-o-w to $206/t CNF Paradip.
Outlook
Amid bearish trends, market participants expect prices to fall further. As such, they have adopted a cautious approach.
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