India: IF-based rebar mills in Chennai raise diameter parity by INR 500-1,000/t on higher input costs

• 8mm and 32mm parity raised by INR 1,000/t
• 10 mm, 12 mm, 16mm parity raised by INR 500/t

Induction furnace (IF) rebar mills in Chennai, Tamil Nadu, have revised diameter-wise gauge parity by INR 500-1,000/t, effective for transactions from 29 September 2026. The revision reflects continued pressure on production economics amid higher raw material and conversion costs.

The 8 mm and 32 mm sizes have seen the sharpest increase by INR 1,000/t, with the parity raised to basic + INR 2,500/t. For 10 mm, 12 mm and 16 mm sizes, the differential has been increased by INR 500/t to basic + INR 1,000/t. The 20 mm and 25 mm sizes continue without a gauge differential.

The latest revision follows the earlier parity adjustment on 26 April 2025, highlighting continued cost pressure on secondary mills. A loading charge of INR 400/t, in addition to applicable 18% GST, is also charged.

The revision comes amid firm finished steel prices and relatively supportive demand conditions, allowing mills to pass on part of the increased production costs. The higher differentials will raise effective procurement costs for buyers, particularly for smaller and larger diameter bars, and could influence purchasing decisions across Chennai’s construction and distribution markets.