India: BF-rebar trade prices rise INR 1,200/t w-o-w as supply tightens

Trade-level BF-rebar prices (distributor to dealer) increased by INR 1,200/t ($12/t) w-o-w to INR 53,200/t ($557/t) ex-Mumbai, as per BigMint’s assessment on 14 August 2026. The increase came despite moderate overall demand, with buying activity largely driven by immediate project requirements.

However, market sentiment strengthened as several mills scheduled maintenance shutdowns for August, while some producers are expected to divert production to other steel products and limit new bookings. These developments are likely to tighten rebar availability and reduce distributor inventories, providing near-term support to prices.

Rebar project prices were heard workable at INR 53,000-54,000/t ($555-565/t) landed. Buyers continued need-based procurement, while the anticipated tightening in supply supported a more positive price outlook.

IF-route rebar prices moved upward this week, with TMT prices increasing by INR 100-1,000/t across  major markets. Raigarh recorded the steepest increase of INR 1,000/t, while Bengaluru and Delhi saw declines amid regional buying pressure.

Delhi prices were also influenced by the resumption of the Muzaffarnagar market, which had remained closed during the previous week due to Kanwar Yatra. Buying activity remained moderate, although demand in central Indian markets received additional support from order bookings from neighbouring states.

Firm raw material prices and low mill margins continued to limit the scope for price reductions. Mill inventories eased to around 8-10 days, while order-book visibility remained limited at 3-5 days, indicating relatively cautious procurement.

Meanwhile, the BF-IF rebar price spread in Mumbai wider further w-o-w to around INR 8,700/t ($42/t). IF-route rebar continues to dominate the Indian market, accounting for an estimated 65-70% share.

Major BF-route raw materials showed a mixed trend during the week. BigMint’s Odisha iron ore fines (Fe 62%) index stood at INR 5,000/t ($52/t) ex-mines as of 8 August.

Meanwhile, premium hard coking coal (PHCC) prices increased by $1/t w-o-w to $246/t CNF Paradip, indicating marginally higher input costs for BF-route steel producers.

Overall, raw material prices remained firm enough to provide cost support to steel prices, while limited mill margins reduced the scope for aggressive price correction.

India’s infrastructure and construction pipeline remained supportive, with new project awards and announcements exceeding INR 21,000 crore during the week.

In the south, L&T secured a major contract estimated at INR 10,000-15,000 crore for an NVIDIA B300 AI factory in Chennai, while Jackson Infra secured a INR 128 crore power transmission order in Karnataka.

In the north, major awards included INR 524.17 crore of work for the Salal Power Station, a INR 400 crore transmission line order for Bajel Projects and a INR 241 crore ITI management project for H.G. Infra in Rajasthan. Jammu & Kashmir also received INR 544.40 crore in PMAY Urban housing assistance.

In the west, Bajel Projects secured more than INR 700 crore in inter-regional grid orders, while the LC Infra-Krystal Consortium won INR 740.06 crore in urban EPC orders in Maharashtra. Waaree Transpower secured a INR 160 crore BESS order.

In the east, Dilip Buildcon secured a INR 2,524 crore irrigation project in Chhattisgarh and a INR 160.20 crore EPC contract in Odisha. Bajel Projects also received a INR 400 crore Raigarh-Jamshedpur transmission line order.

At the pan-India level, KPIL secured INR 3,526 crore in new orders, while NBCC received INR 801.20 crore in PMC work orders. Bondada Engineering added INR 514 crore of new orders, taking its order book to INR 10,023 crore.

The strong project pipeline provides a supportive backdrop for long steel consumption, although actual steel buying remains dependent on project execution, funding and procurement cycles.

BF-rebar prices are expected to remain firm in the near term, with August supply tightening likely to outweigh moderate demand. Planned maintenance shutdowns, production diversion and selective booking restrictions could further reduce market availability and draw down distributor inventories. Meanwhile, resilient infrastructure activity and firm raw material costs should provide additional support.

Prices may therefore retain an upward bias through August, although the extent of further gains will depend on actual project-led steel consumption and the duration of supply disruptions.