India: BF-rebar trade prices drop w-o-w amid weak buying activity

• Major mills increase discounts, trim list prices
• Mill inventories rise 8% from early-Sep levels

India’s trade-level blast furnace (BF) rebar prices dropped w-o-w across major markets. Major mills either increased their discounts or reduced list prices due to subdued market sentiments.

Trade-level BF rebar prices edged down by INR 100/tonne (t) ($1/t) w-o-w to INR 47,200/t ($534/t) exy-Mumbai, as per BigMint’s assessment on 12 September 2025. Prices are exclusive of GST at 18%.

In the projects segment, prices hovered between INR 45,500-47,000/t ($516-532/t) FOR Mumbai. A primary mill concluded a deal of around 5,000 t at INR 46,000-46,500/t landed basis during the week.

“Construction and infrastructure activities have slowed down due to heavy monsoons, labour shortages, and logistics hurdles. Procurement remains minimal as overall market sentiment stays weak,” highlighted a buyer.

Inventories at mills rose slightly by around 8% in mid-September, compared with levels seen at the beginning of the month.

Update on projects

• Rail Vikas Nigam Limited (RVNL) emerged as the lowest bidder from West Central Railway for EPC works of traction sub-station and SCADA system between Bina-RTA, worth INR 169.5 crore, executable in 540 days.
• Kalpataru Projects International Limited (KPIL) announced fresh orders worth INR 2,720 crore across the power transmission and distribution (domestic and overseas) and buildings and factories segments in India, taking its FY’26 order intake to INR 12,620 crore.

Factors behind market dynamics

1. IF-rebar prices show mix trends: IF-rebar trade prices witnessed mixed movements w-o-w. Early in the week, improved market activity pushed manufacturers to raise prices, but sluggish demand later forced discounts to clear stock. Inventory levels remained above 12 days across regions. As of 12 September 2025, IF rebar prices fell INR 400/t ($5/t) w-o-w to INR 44,100/t ($500/t) exw-Mumbai.

The BF-IF rebar price gap stood at around INR 3,000-3,500/t ($34-40/t) in Mumbai. IF rebars hold a dominant 65-70% market share in India.

2. Raw material prices show mixed trends w-o-w: BigMint’s Odisha iron ore fines (Fe 62%) index remained stable w-o-w at INR 5,500/t ($62/t) ex-mines on 6 September 2025.

Iron ore prices in Odisha remained firm this week, supported by need-based buying from steelmakers and traders, despite limited material availability in the market. Lower-grade fines witnessed active buying interest, largely driven by improved activity in the export market.

Australian premium hard coking coal (PHCC) prices edged down by $3/t w-o-w to $201/t CNF Paradip.

Outlook

Trade prices of BF-rebars may remain range-bound at the current levels in the near term amid need-based demand.