- IF rebar prices decline across markets
- Widening BF-IF spread pressuring primary prices
Trade-level BF rebar prices (distributor to dealer) declined by INR 1,500/t ($15/t) w-o-w to INR 57,500/t ($600/t) exy-Mumbai. Demand remained average across major regions, while northern India continued to witness weaker buying interest, according to sources. Higher inventory availability with distributors kept procurement cautious at prevailing prices, resulting in a mixed sentiment during the week. Meanwhile, rebar project deals were reported at INR 57,000-57,500/t ($594-600/t) on landed basis.
Update on projects
1.GR Infraprojects signs Concession Agreement for INR 2,441 Crore Bihar HAM Highway Project.
2.PNC Infratech receives LOA for INR 560 Crore Kanpur Ganga Bridge EPC Project.
3.HG Infra Engineering secures INR 3,931.11 crore order from Welspun Enterprises for 6-Lane Pune-Shirur Highway in Maharashtra.
Factors driving market dynamics
1. IF rebar prices declined across major markets this week due to weak demand, slower construction activity, and cautious buying sentiment. Mills reduced offers and provided discounts to boost sales and clear rising inventories, which reached 10-12 days by early May. Rebar prices fell INR 400-500/t w-o-w, with the sharpest decline in Raipur. Limited pre-monsoon restocking may support prices.
Meanwhile, the blast furnace (BF) to IF rebar price spread in Mumbai remained on the higher side at INR 10,000/t ($104/t) this week. IF rebar continues to dominate the Indian market with a 65-70% share.
2. BigMint’s premium hard coking coal (PHCC) prices remained stable w-o-w at $205/t CNF Paradip, NMDC Limited increased iron ore prices by INR 200-250/t across grades effective 6 May.
Outlook
Higher inventories and widening gap in IF and BF rebar amid weak buying interest may create further pressure on prices in the near term.
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