- Buyers adopt cautious stance amid weak sentiment
- IF rebar prices drop w-o-w amid need-based buying
Trade-level blast furnace (BF) rebar prices declined w-o-w across key Indian markets owing to dull demand and weak sentiment. The prevailing uncertainty led market participants to adopt a cautious approach and stay on the sidelines.
Trade-level BF rebar prices dropped by INR 400/tonne (t) ($5/t) w-o-w to INR 56,000/t ($567/t) exy-Mumbai, as per BigMint’s assessment on 23 May 2025. Prices are exclusive of GST at 18%
In the projects segment, prices continued to fall w-o-w to around INR 54,000-55,000/t ($633-645/t) FOR Mumbai amid need-based trade activities. Buyers were cautious regarding the procurement of material amid market uncertainty and weak sentiment.
Factors behind drop in prices
1. IF rebar trade prices decline w-o-w: Induction furnace (IF) rebar trade prices declined w-o-w amid need-based trade and limited inquiries. Manufacturers either kept their list prices stable or reduced them and offered discounts due to weak market sentiments. Additionally, inventory holding time stood at around 10-12 days. In Mumbai, prices dropped by INR 400/t ($5/t) w-o-w to INR 47,500/t ($557/t) exw on 23 May 2025.
The BF-IF rebar price gap stood at around INR 8,500/t ($100/t) in Mumbai, where IF rebars hold a dominant 65-70% market share.
2. Raw material prices show downtrend: BigMint’s Odisha iron ore fines (Fe 62%) index dropped by INR 200/t ($2/t) w-o-w to INR 5,100/t ($60/t) on 16 May 2025, due to weak market sentiment and lower offers from major miners. Continued softness in the pellet and sponge iron segments, along with market participants’ watchfulness ahead of the 19 May Odisha Mining Corporation (OMC) auction, added downward pressure.
Australian premium hard coking coal (PHCC) prices remained stable w-o-w at $206/t CNF Paradip.
Outlook
Market participants remain cautious, expecting further price declines amid sluggish trade activities.
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