- Subdued construction activity leads to weak demand
- Buyers restrict purchases to immediate project requirements
BF rebar prices (distributor-to-dealer) declined by INR 1,000/t ($10/t) w-o-w to INR 55,800/t ($487/t) exy-Mumbai, according to BigMint’s assessment on 29 May 2026. Inventory levels at major mills have surged by over 30%, while heightened selling pressure at the distributor level continues to weigh on market sentiment. Buying activity remained moderate across major regions, while demand in south India continued to stay weak, market participants informed. Need-based procurement was seen amid limited construction activity. Overall, market sentiment remained cautious and weak during the week.
Rebar project prices were reported at INR 55,000-56,000/t ($573-584/t) landed, according to market participants.
Key project updates
1. Nyati Engineers emerged as the L1 bidder for Mumbai Metro Rail Corporation’s Metro Bhawan and staff quarters construction project in Maharashtra, valued at INR 419 crore, with a quoted price of INR 459.41 crore.
2.SPML Infra secured an order worth INR 165.4 crore for the construction of a 400 kV grid sub-station in Kota, Rajasthan.
3. Godrej Properties awarded construction contracts worth INR 1,100 crore to Tata Projects for luxury residential developments in Gurgaon.
4. RVNL emerged as the L1 bidder for an East Coast Railway signalling reliability project worth INR 164 crore.
5.A subsidiary of G R Infraprojects won an NHAI highway contract valued at around INR 1,453 crore.
6.Innovision received a toll collection and maintenance contract worth INR 24.89 crore in Tamil Nadu.
7.Kalpataru secured a cluster redevelopment project worth INR 1,250 crore in Kandivali East.
8.The Centre approved a INR 414 crore NH-66 flyover project in Karnataka aimed at easing congestion near New Mangalore Port.
Factors shaping market dynamics
1. IF-route rebar prices witnessed mixed trends across regions this week. While overall market activity remained limited. Buying interest improved only for a brief period of 1–2 days during the week, with most buyers maintaining a cautious approach and restricting purchases to immediate requirements. Sellers attempted to push prices higher amid signs of better market movement; however, resistance from buyers at elevated price levels limited trades.
Meanwhile, inventory pressure persisted at mills, with stock levels reported at around 10-15 days. The BF-IF rebar price spread in Mumbai widened w-o-w to INR 9,000/t ($103).
2. Raw material prices remained range-bound during the week. BigMint’s Odisha iron ore fines (Fe 62%) index declined by INR 400/t w-o-w to INR 5,100/t ($51/t) ex-mines as of 23 May.
(PHCC) premium hard coking coal prices increased by $1/t w-o-w to $268/t CNF Paradip.
Outlook
BF rebar prices are likely to remain under pressure in the near term due to weak buying interest, rising inventory levels, and slow construction activity, while steady infrastructure project announcements may help improve market confidence and support demand gradually.
Leave a Reply