- Higher project and retail demand, tight supplies by leading mills drive rebar market
- Primary mill price hikes, improved export market sentiment support domestic HRC prices
- Coking coal and coke costs increase, tight scrap and pellet availability boost steel prices
Morning Brief: BigMint’s India steel composite index surged 2% w-o-w, as assessed on the week ended 27 August 2026, as domestic steel prices continued to remain on an upward trajectory due to a combination of improving retail demand, tight material availability and mill price hikes amid strengthening raw material prices. The index witnessed the steepest weekly surge since 6 March, as per BigMint data, and climbed to a nearly 4-month high after successive increases throughout August.
Long steel prices saw the sharpest gains w-o-w, with the rebar sub-index rising 3% on the week and thereby supporting the longs index which rose by 2.4%. Flat steel prices, too, saw steady gains, with HRC rising by 1.7% w-o-w while the HR plate index witnessed the sharpest weekly increase of 1.9%.
Highlights of price movements
BF rebar market sees sustained uptrend: BigMint’s benchmark assessment for rebar (IS 1786 Fe 550D, 12-32 mm, BF route) was assessed at INR 55,000/t as of 27 August, up by INR 1,100/t w-o-w from INR 53,900/t recorded on 21 August. Prices are ex-Mumbai for the distributor-to-dealer segment and exclude 18% GST. The increase was driven by improved buying activity, primarily from the retail segment, while demand from project customers also remained supportive. A gradual recovery in construction activity contributed to stronger buying interest.
Rebar availability remained constrained despite the resumption of operations at several mills following planned maintenance shutdowns. While some producers restarted production, a few mills continue to remain under maintenance. Limited availability prompted certain producers to stop accepting fresh bookings.
Moreover, some producers are expected to divert production towards other steel products, which could further restrict rebar supply in the near term. Market participants reported no significant inventory pressure at mills, with most available material being absorbed by the retail segment.
The major integrated steelmakers raised rebar prices by up to INR 1,000/t ($10/t) for end-August deliveries, further strengthening market sentiment and encouraging buyers to prepone their bookings in anticipation of further price hikes.
IF rebar rises on surging raw material costs: IF-route rebar prices increased across regions last week supported by firm raw material prices and moderate-to-healthy demand. Higher prices of key inputs, particularly coal and iron ore, continued to push up production costs. The shortage of pellets further strengthened sponge iron prices, adding to cost pressures for IF-route producers.
Domestic billet prices increased by INR 1,000-2,200/t ($10-23/t) w-o-w across regions due to higher raw material costs, particularly sponge iron and melting scrap, which pushed up production costs. The increase in primary steel prices provided additional support to billet prices. Sponge iron prices increased by INR 1,200-2,000/t ($12-20/t) w-o-w, while BigMint’s melting scrap index rose by almost INR 2,000/t w-o-w.
HRC, CRC prices trend higher w-o-w: BigMint’s assessment for HRC (IS2062, Grade E250, 2.5-8 mm/CTL) increased by INR 1,100/t w-o-w to INR 59,400/t ($623/t) ex-Mumbai as of 25 August from INR 58,300/t ($611/t) on 18 August. CRC prices increased by INR 1,100/t over the same period, rising to INR 66,500/t ex-Mumbai as of 25 August from INR 65,400/t on 18 August.
Major domestic mills increased HRC and CRC prices by around INR 500-750/t across regions, providing a clear upward push to prices. Following mill price revisions, trade-level HRC offers increased, with sellers revising prices higher in line with elevated replacement costs.
Demand has improved marginally, with buyers showing increased interest in fresh bookings and stock replenishment. At the same time, relatively constrained spot availability of select grades and thicknesses supported the price hike. A market participant said, “Buying activity has improved slightly, with demand picking up across the market amid expectations of further price increases.”
Therefore, higher mill prices, improved demand and tighter spot availability pushed HRC prices higher. Market sentiment turned positive, with trade indications suggesting further upside in the near term.
HR plate prices rise sharply: HR plate (IS 2062, Gr E250 Br, 20-40 mm) increased by INR 1,000/t ($10/t) w-o-w to INR 62,500/t ($655/t) from INR 61,500/t ($645/t) in Mumbai. In Delhi, prices rose by INR 1,100/t ($11/t) to INR 60,900/t ($638/t) from INR 59,800/t ($627/t), tracking the upward movement in domestic HRC prices.
Plate prices increased on moderate-to-good demand, improved buying activity and shortages of select grades and thicknesses. Price indications strengthened after major domestic mills raised offers for new order bookings, while expectations of improved demand in the coming weeks encouraged sellers to maintain firm.
HRC export offers edge up: BigMint’s India HRC export index to the Middle East and Southeast Asia increased by $15/t w-o-w to around $525/t FOB last week. Higher domestic realisations and improved buying interest from the Middle East provided support. In Vietnam, expectations of price increases by the major local mills ahead of the peak demand season led to an improvement in market sentiment, although buyers remained reluctant to accept higher offers. However, exports to the EU remained subdued amid the summer holiday slowdown and the exhaustion of available quotas for October-December.
Coking coal, coke prices rise: While BigMint’s Odisha iron ore fines (Fe 62%) index remained stable w-o-w, the rise in pellet and concentrate prices provided support to steel prices. Coal prices rose sharply, with imported South African coal (RB2) portside prices rising by INR 700-800/t w-o-w. Domestic high-CV coal prices, too, edged up amid monsoon disruptions and disruptions in dispatches by key CIL subsidiaries. Importantly, domestic and imported met coke prices increased, with the benchmark Australian coking coal index climbing $16/t w-o-w on FOB basis.
Outlook
BF-route rebar prices are expected to remain firm due to improved construction 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, market sources informed BigMint. The shrinking spread with IF steel prices will also support BF rebar, with surging coal costs and tight scrap availability expected to propel IF-route steel prices.
HRC and CRC prices are expected to increase by around INR 1,000-1,500/t on improved order books, tight supplies in certain regions and of certain grades and dimensions, improved import parity, better export prospects and prices, as well as the recent improvement in Chinese HRC prices and futures due to cost support.
BigMint concludes, therefore, that domestic steel prices, especially in the pre-festive period, are expected to remain on an upward trajectory.
Leave a Reply