- Material shortages, hikes by mills lift BF rebar trade prices
- Strong orders from projects segment add to positive sentiment
Indian Tier-I mills have increased rebar prices by up to INR 2,500/tonne (t) ($28/t) for mid-January 2026 deliveries, sources informed BigMint. Post-revision, list prices stood at INR 54,000-55,000/t ($594-605/t) on landed basis. Following this, trade-level blast furnace (BF) rebar prices (distributor to dealer) rose w-o-w across major Indian markets. The distribution channel experienced limited material availability in some sizes, highlighted market participants.
Trade-level BF-rebar (distributor to dealer) prices rose w-o-w by INR 1,300/t ($14/t) to INR 53,800/t ($592/t) exy-Mumbai as per BigMint’s assessment on 16 January 2026. Prices are excluding GST at 18%.
In the projects segment, prices hovered at around INR 53,500-55,000/t ($589-605/t) FOR Mumbai basis. Strong order bookings from the infrastructure and construction segment led to a material shortage at mills and lent support to prices.
Inventories at primary mills have declined by 10-12% in mid-January as against earlier in the month, as per sources. Strong lifting of material in the projects segment and the distribution network led to the inventory reduction at mills’ yards. Meanwhile, some steelmakers are booked out for the coming days, as per sources.
Project updates
- L&T has won a significant order to construct a 3.2-km cable-stayed bridge over the Muri Ganga, improving all-weather connectivity to Sagar Island.
- L&T has secured a large order to build India’s largest 3,000 MW pumped storage project at Saidongar-1 in Maharashtra, strengthening grid reliability.
- L&T won a large turnkey order from Petronet LNG to build LNG, ethane, and propane storage facilities at Dahej, strengthening India’s petrochemical infrastructure.
Key highlights of market dynamics
1. IF-rebar prices rise w-o-w: IF-route rebar trade prices increased w-o-w across major Indian markets, supported by moderate trading activity and improved mill bookings. Higher prices of key semi-finished products such as billets and sponge iron in the first half of the week also contributed to the uptrend. Meanwhile, market activities slowed down later owing to the Makar Sankranti and Pongal festive holidays in some parts of the country. Inventory levels remained comfortable at 7-10 days. IF rebar prices rose to INR 1,800/t ($20/t) to INR 49,700/t ($547/t) ex-works Mumbai as of 16 January 2026 and are expected to stay firm in the near term.
The BF-IF rebar price spread in Mumbai stood at INR 4,500-5,000/t ($50-55/t). IF rebars continue to dominate the domestic market with a 65-70% share.
2. Raw material prices remain stable w-o-w: Prices of major raw materials remained unchanged w-o-w. BigMint’s Odisha iron ore fines (Fe 62%) index was unchanged w-o-w at INR 5,800/t ($64/t) ex-mines. Iron ore prices in Odisha stayed mostly stable this week, with fines unchanged and lump prices slightly lower amid weak downstream steel demand and limited, need-based buying activity.
Australian premium hard coking coal (PHCC) prices were stable w-o-w at $231/t CNF Paradip.
Outlook
Rebar trade prices are likely to rise, supported by strong trading activity and the latest round of price hikes by mills. It is heard that some private steel mills may opt for a maintenance shutdown next month, which may add to the supply shortage in the market.
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