- Tight primary supply, maintenance shutdowns strengthen mills’ pricing power
- Infrastructure demand, low inventories and improved buying support sentiment
A leading Indian steelmaker has raised rebar list prices by INR 1,750/t ($18/t) for early September deliveries. Following the early-August price announcement, the company raised prices by INR 3,250/t during August, taking the cumulative August-September increase to INR 5,000/t m-o-m.
Several integrated mills remain under scheduled maintenance, although some have resumed production. Limited spot availability has prompted some producers to stop fresh project bookings, while several mills are yet to announce revised prices.
Key market drivers
Tightening supply: Ongoing maintenance shutdowns have reduced primary rebar availability. A major South India-based PSU steelmaker has remained under maintenance for over two months, adding to supply constraints.
Infrastructure demand: Infrastructure projects worth over INR 1.2 lakh crore across roads, railways, power, water and urban infrastructure are supporting BF-route rebar demand and providing mills with healthy order visibility.
Improved trade activity: Lower distributor inventories and tighter spot availability have encouraged selective restocking, strengthening market sentiment despite lingering monsoon-related demand constraints.
Higher input costs: Gradually rising coal prices amid supply shortages have increased production costs, providing additional support to mills’ firm pricing stance.
Outlook
Rebar prices are expected to remain firm, supported by tighter supply, ongoing maintenance, higher input costs, improving project demand, lean inventories and expectations of stronger post-monsoon construction activity.
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