- Mills’ raise prices amid improved market sentiment, healthy project bookings
- Limited availability, rising input costs enhance producers’ pricing power
Trade-level blast furnace (BF) rebar prices increased by INR 1,100/t w-o-w to INR 55,000/t ($576/t) ex-Mumbai on 27 August 2026, according to BigMint’s assessment. The increase was driven by improved buying activity, primarily from the retail segment, while demand from project customers also remained supportive.
Project prices were reported in the workable range of INR 55,000-56,000/t ($576-586/t) landed. Procurement activity from project customers improved, supported by higher booking volumes and expectations of stable-to-firm prices. A gradual recovery in construction activity also contributed to stronger buying interest.
Rebar availability remained constrained despite the resumption of operations at several mills following planned maintenance shutdowns. While some producers have restarted production, a few mills continue to remain under maintenance. Limited availability has also prompted certain producers to stop accepting fresh bookings.
In addition, some producers are expected to divert production towards other steel products, which could further restrict rebar supply in the near term. Market participants also reported no significant inventory pressure at the mill level, with most available material being absorbed by the retail segment.
Major integrated steelmakers have also raised rebar prices by up to INR 1,000/t ($10/t) for end-August deliveries, further strengthening market sentiment and encouraging buyers to advance their bookings in anticipation of further price increases.
Higher raw material costs have continued to support producers’ pricing decisions. Despite the recent increase in rebar prices, buying activity has remained healthy, with customers continuing to book material amid expectations of further price gains.
Factors driving market
1. IF-route rebar prices move higher amid firm input costs
IF-route rebar prices increased across major regions during the week, supported by firm raw material prices and moderate-to-healthy demand. Higher costs of key inputs, particularly coal and iron ore, continued to increase production costs.
A shortage of raw pellets further pushed up sponge iron prices, adding additional cost pressure on IF-route producers. Relatively healthy market demand enabled mills to pass on a portion of these higher costs through increased rebar offers.
Meanwhile, the BF-IF rebar price spread in Mumbai narrowed further w-o-w to around INR 6,400/t ($67/t). IF-route rebar continues to account for an estimated 65-70% share of the Indian rebar market.
2. Raw material costs remain supportive
BF-route raw material prices recorded mixed movements during the week. BigMint’s Odisha iron ore fines (Fe 62%) index remained stable w-o-w at INR 5,000/t ($52/t) ex-mines as of 22 August 2026, supported by steady trading activity and stable demand from steelmakers.
Meanwhile, BigMint’s premium hard coking coal (PHCC) assessment increased by $23/t w-o-w to $282/t CNF Paradip, reflecting firmer sentiment in the seaborne coking coal market.
Higher coking coal costs, coupled with limited mill margins, are expected to keep production costs elevated for integrated steelmakers. With raw material costs remaining firm and rebar availability constrained, producers are likely to maintain a strong pricing stance.
Update on projects
- West led the project-award activity, with ₹4,788 crore of identified transmission and infrastructure orders, including Adani Energy Solutions’ ₹4,700 crore Satara transmission project.
- South India recorded major infrastructure activity, led by L&T’s ₹1,000-2,500 crore AIIMS Madurai order and Hazoor Multi Projects’ ₹193.85 crore NHAI contract.
- East India saw ₹872.81 crore of identified awards, led by the ₹704.70 crore Frontier Highway EPC contract awarded to Ceigall India-Sushee Infra JV.Rajasthan added ₹740.97 crore through ArMee Infotech’s solar BOS/EPC subcontract for a 600 MW AC project.
- Central India recorded ₹134.63 crore through Advait Energy Transitions’ MPPTCL ERS contract.
KPIL secured an additional ₹2,372 crore of power T&D and B&F orders across domestic and international markets.
Outlook
BF-route rebar prices are expected to remain firm in the near term, supported by healthy demand, tight availability and elevated input costs. Continued buying interest, limited inventory pressure and constrained supply could support a further increase of INR 500-1,000/t in the coming days.
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