- Rising input costs, falling inventories prompt further mill price hike
- Trade prices remain stable amid muted enquiries, cautious sentiment
Indian primary steelmakers increased rebar prices further by up to INR 1,000/tonne (t) ($11/t) in the week ended 27 March 2026, sources informed BigMint. Post-revision, list prices stood at INR 59,500-61,000/t ($628-644/t) on landed basis. The price hike could be attributed to rising raw material prices and input costs and falling inventories.
Trade-level BF-rebar prices (distributor to dealer) remained stable w-o-w at INR 60,000/t ($633/t) exy-Mumbai, as per BigMint’s assessment on 27 March 2026. Enquiries were subdued in recent days due to cautious buying by end-users at higher prices and market uncertainty.
In the projects segment, prices hovered at around INR 60,000-61,000 /t ($633-644/t) FOR basis. Mills reported healthy order bookings and continued to focus on fulfilling pending project-linked orders, according to sources.
Rebar inventories at primary mills dropped further by 8-9% in end-March as against the beginning, as per sources. Inventory fell amid steady dispatches of previously booked material.
Update on projects
- GR Infraprojects received NHAI LOA for INR 2,440.87 crore NH-33 Bihar HAM project; completion timeline has been set at 910 days.
- RITES received LOA from RDSO for INR 105.69 crore test track maintenance contract in the Jodhpur division, which is to be executed over 60 months.
- NHAI’s 912 km highway projects in Maharashtra and Gujarat under BOT model saw zero bids, highlighting weak private sector appetite despite revised terms and extended timelines.
- Kalpataru Projects International Limited (KPIL) won INR 4,439 crore T&D orders spanning India, Africa, and Sweden, strengthening its global order book and execution pipeline.
- L&T secured a design-build-operate order for a Guwahati water project, including treatment plant, SCADA system, and five-year O&M, strengthening its northeast India presence.
- Ceigall India received two EPC work orders from Purvah Green Power Private Limited for Andhra wind project, totalling INR 298 crore. Execution is set to start in 10 months.
- Ceigall subsidiaries signed PPAs with MSEDCL for 337 MW solar projects in Maharashtra, with INR 1,369 crore EPC value and 25-year supply.
- L&T’s Buildings and Factories division won orders across India, including for a float glass plant, two-wheeler manufacturing facility, and add-on projects, showcasing execution expertise.
Factors behind market dynamics
1. Raw material prices rise w-o-w: Prices of major raw materials used in the BF route increased w-o-w. BigMint’s Odisha iron ore fines (Fe 62%) index was up by INR 100/t ($1/t) w-o-w to INR 5,850/t ($62/t) ex-mines as on 21 March 2026. Iron ore prices in Odisha were supported by higher bids observed in the latest Odisha Mining Corporation (OMC) auction and a firm response from buyers. The auction saw active participation from steelmakers, indicating improved sentiment and a willingness to secure raw material amid tightening supply conditions.
BigMint’s premium hard coking coal (PHCC) prices rose by $5/t to $250/t CNF Paradip.
2. IF rebar prices fall w-o-w: Induction furnace (IF) rebar trade prices fell w-o-w across major Indian markets, pressured by weak sentiment, sluggish sales, and subdued buying interest. Sellers offered discounts to liquidate volumes, while buyers remained cautious. Midweek saw a modest improvement with better participation and firmer offers. Mills prioritised earlier bookings; inventories stood at 7-10 days, with prices expected to stay firm in the coming days.
IF rebar trade prices in Mumbai declined by INR 300/t ($3/t) w-o-w to INR 50,700/t ($535/t) exw on 27 March.
The BF-IF rebar price spread in Mumbai widened to around INR 9,500-10,000/t. IF rebar continues to dominate the Indian market, accounting for an estimated 65-70% share.
Outlook
BigMint expects trade-level BF-rebar prices to rise next week, as mills have indicated further price hikes for April deliveries.
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