- BF rebar prices may remain volatile next week
- Stable raw material costs to pressure steel prices
Trade-level BF rebar prices (distributor-to-dealer) edged down by INR 700/t ($7/t) w-o-w to INR 56,800/t ($592/t) exy-Mumbai, according to BigMint’s assessment on 22 May 2026. Buying activity remained moderate across key regions, while demand in south Indian markets continued to stay relatively weak, as per sources. Distributors maintained comfortable inventory levels, leading to need-based procurement amid limited construction activity. Overall market sentiment remained cautious-to-weak during the week.
Rebar project prices were heard workable in the range of INR 55,00-56,000/t ($573-584/t) landed, according to market participants.
Project updates
1.Megha Engineering and Infrastructures Ltd (MEIL) secured an irrigation project worth INR 3,897.90 crore from CE Tapi Irrigation Development Corporation, Jalgaon.
2.Adani Enterprises Ltd emerged as the highest bidder for the Chennai Outer Ring Road OMT project worth INR 2,511 crore.
3.Konkan Railway Corporation Ltd floated a rail tunnel connectivity project for Vizhinjam Port, Keralam, worth INR 913.77 crore.
4.Maharashtra announced multiple infrastructure projects, including jetty construction, roads, warehouses, and Kumbh-related urban development works collectively valued at over INR 200 crore.
5.GMR Group is expected to invest around INR 7,000 crore in airport development and expansion projects.
6.G R Infraprojects’ subsidiary executed an INR 1,453.57 crore concession agreement with NHAI for the NH-56 upgradation project in Gujarat.
7.KNR Constructions signed a concession agreement with NHAI on 11 May for the INR 1,734 crore NH-167 Gudebellur–Mahabubnagar four-laning HAM project in Telangana.
8.H.G. Infra Engineering received a Letter of Award (LoA) on 11 May for an NHAI six-lane highway corridor project in Maharashtra, including elevated stretches, worth around INR 3,931 crore.
9.Ceigall India won an NHAI highway project in Punjab worth INR 603 crore.
Factors driving market dynamics
- 1. IF-rebar trade prices drop w-o-w: IF rebar trade prices declined across major markets this week. Trade activity remained subdued, with limited deal volumes overall. Demand continued to weaken, particularly in finished and semi-finished steel segments, as buyers focused only on immediate requirements and maintained a cautious approach. Producers reduced offers and extended additional discounts to support material movement, while mill inventories were reported at around 8-12 days.In the short term, market participants expect price volatility to persist amid weak bookings in the finished steel segment. Induction furnace (IF) rebar trade prices in Mumbai decreased by INR 500/t ($5/t) w-o-w to INR 46,800/t ($485/t) exw as of 22 May.
Meanwhile, the BF-IF rebar price spread in Mumbai narrowed further w-o-w to INR 10,000/t ($103). IF rebar continue to hold a dominant share in the Indian long steel market.
- 2. Raw material prices show mix trend w-o-w: Raw material Prices of key BF-route raw materials stayed largely stable during the week. BigMint’s Odisha iron ore fines (Fe 62%) index remained unchanged w-o-w at INR 5,500/t ($573/t) ex-mines as of 16 May.
- Meanwhile, BigMint’s premium hard coking coal (PHCC) prices slightly dropped by $1 d-o-d at $267/t CNF Paradip.
Outlook
Prices are likely to remain under pressure amid rising inventory levels, a widening price gap with IF route rebar, and extreme heatwave conditions impacting construction activity. These factors are compelling suppliers to offer attractive discounts to liquidate material in the market.
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