- Tight supply, coupled with good demand, lifts prices
- Higher raw material costs lend support to prices
Indian Tier-I mills have increased rebar prices by up to INR 1,000/tonne (t) ($11/t) this week, sources informed BigMint. Post-revision, list prices stood at INR 55,500-57,000/t ($604-620/t) on landed basis. After the hike by mills, trade-level blast furnace (BF) rebar prices (distributor to dealer) increased w-o-w across major Indian markets. Seamless material lifting and lower availability of material has kept market sentiments firm this week, market participants informed.
Trade-level BF-rebar (distributor to dealer) prices rose by INR 2,100/t ($23/t) w-o-w to INR 57,400/t ($624/t) exy-Mumbai as per BigMint’s assessment on 30 January 2026. Prices are excluding GST at 18%.
In the projects segment, prices hovered at around INR 56,000-57,500/t ($610-626/t) FOR Mumbai. Robust demand from the infrastructure and construction segments led to a material shortage at mills, supporting prices. Some offers were heard even higher than these levels due to supply shortages.
Inventories at primary mills have reduced by 15-20%, as per market sources. Most steelmakers are booked out for the coming days, and some are not offering to the projects segment owing to low stocks.
Project updates
- Rail Vikas Nigam Limited (RVNL) has emerged as L1 bidder for South Central Railway’s 2×25 kV OHE upgradation project worth INR 242.5 crore, to be executed over 24 months.
- IRB Infrastructure Developers has executed the Project Implementation Agreement with IRB InvIT Fund and will act as Project Manager for the VM7 Expressway project.
- L&T’s Heavy Civil Infrastructure vertical secured a major contract in Saudi Arabia for the Riyadh Metro Red Line extension, including 8.4 km turnkey construction and five stations.
- Rail Vikas Nigam Ltd (RVNL) -GPT Infraprojects JV has secured a INR 1,201 crore Northern Railway order to build a new rail-cum-road bridge over the Ganga in Varanasi within 48 months.
Factors behind market dynamics
1. Raw material costs rise w-o-w: Prices of major raw materials rose w-o-w. BigMint’s Odisha iron ore fines (Fe 62%) index edged up by INR 100/t ($1/t) w-o-w at INR 6,000/t ($65/t) ex-mines. Iron ore prices in Odisha remained supported after the recent OMC auction and a noticeable hike in bid levels compared to the previous month. The positive momentum in downstream sponge iron and semi-finished steel prices has provided further support to raw material prices.
Australian premium hard coking coal (PHCC) prices rose by $14/t w-o-w at $254/t CNF Paradip. Higher input costs have led to a hike in rebar prices.
2. IF-rebar prices show mixed trends w-o-w: IF-route rebar prices have shown mixed trends w-o-w. Weak enquiries and lack of fresh bookings kept trading activity subdued this week, prompting sellers to reduce offers or extend discounts. Buyers largely stayed in a wait-and-watch mode. However, demand for sponge iron and billets improved in some regions which supported prices. IF rebar trade prices rose w-o-w by INR 600/t ($7/t) to INR 50,700/t ($552/t) exw-works Mumbai as of 30 January.
The BF-IF rebar price spread in Mumbai widened to around INR 6,500-7,000/t ($71-76/t). IF rebars continue to dominate the domestic market with a 65-70% share.
Outlook
Indian primary mills have indicated a price hike in range of INR 1,500-,2000/t ($16-22/t) for early-February dispatches, which will keep trade prices on the rise amid positive market sentiments.
Leave a Reply