India: BF-rebar trade prices decline by INR 1,100/t ($12/t) w-o-w on sluggish demand

• Buyers remain on sidelines in weak market
• IF-rebar prices slide w-o-w on need-based buying

Trade-level BF rebar prices continued to decline this week across major Indian markets. Buyers postponed their purchases amid ongoing downward price correction and market uncertainty. Distributors remained in destocking mode, while major mills reduced list prices amid weak market sentiments.

Trade-level BF rebar prices declined by INR 1,100/tonne (t) ($12/t) w-o-w to INR 53,200/t ($617/t) exy-Mumbai, as per BigMint’s assessment on 13 June 2025. Prices are exclusive of GST at 18%.

Weak demand and cautious sentiment kept trade muted, with most buyers moving to the sidelines. In the projects segment, prices slipped further to INR 52,000-52,500/t ($604-610/t) FOR Mumbai, as slower construction activity and negative outlook weighed on procurement decisions.

Update on projects

• L&T’s Heavy Civil Infrastructure division has secured a major order from JSW Energy for the 1,500 MW Bhavali Pumped Storage Project in Maharashtra. The project includes reservoirs, tunnels, and underground powerhouse, enhancing renewable energy integration and grid stability.
• Kalpataru Projects International Ltd (KPIL) and its subsidiaries have secured new orders worth INR 3,789 crore, including their largest-ever Buildings & Factories order in India and power transmission and distribution projects in international markets.
• L&T’s Power Transmission & Distribution business has secured key orders in India and the Middle East, including 765kV and 400kV lines for Andhra Pradesh’s renewable energy zone and turnkey GIS substation projects from leading regional operators.

Market dynamics

1. IF-rebar prices drop w-o-w: Induction Furnace (IF) rebar market continued to witness a downward trend this week amid persistent weak sentiment and lack of bulk bookings. Buying activity remained largely need-based, with procurement limited to immediate requirements. Uncertainty in market direction kept traders and end-users cautious.

In response, manufacturers further reduced list prices or offered market-specific discounts to liquidate material. Inventory levels rose slightly, hovering around 12-15 days. Overall, IF rebar sentiments remained subdued, weighed down by limited trade interest and muted demand across regions. IF rebar prices dropped by INR 900/t ($10/t) w-o-w to INR 44,600/t ($518/t) exw-Mumbai as on 13 June.

The BF-IF rebar price gap widened to around INR 8,500-9,000/t ($99-105/t) in Mumbai. IF rebars hold a dominant 65-70% market share in India.

2. Raw material prices drop w-o-w: BigMint’s Odisha iron ore fines (Fe 62%) index edged down by INR 50/t ($0.6/t) w-o-w to INR 5,050/t ($59/t) on 7 June. Iron ore prices edged down w-o-w amid moderate buying interest and trade based on immediate requirements. Miners maintained their offer levels, indicating a wait-and-watch approach in the face of subdued inquiries and limited fresh bookings.

Australian premium hard coking coal (PHCC) prices dropped by $9/t w-o-w to $201/t CNF Paradip.

Outlook
BF rebar prices are likely to remain under pressure amid weak demand, continued destocking, and cautious buying.