India: Trade-level BF-rebar prices rise by INR 500/t ($6/t) w-o-w

• Certain BF mills raise list prices, more hikes expected
• Narrowing BF-IF price gap contributes to higher BF tags

India’s trade-level blast furnace (BF) rebar prices witnessed an increase w-o-w across major Indian markets. Certain mills raised list prices in late-July, and market participants expect steelmakers to announce further hikes for August. This lent support to trade-level prices, improving sentiments in the segment.

Trade-level BF rebar prices increased by INR 500/tonne (t) ($6/t) w-o-w to INR 48,000/t ($549/t) exy-Mumbai, as per BigMint’s assessment on 1 August 2025. Prices are exclusive of GST at 18%.

In the projects segment, prices stood at INR 47,000-48,000/t ($537-549/t) FOR Mumbai, an increase of INR 500/t ($6/t) w-o-w. Mills sold strong volumes last month, as prices bottomed out during late-July. Trades for around 20,000 t were heard concluded at INR 45,500-46,000/t ($520-526/t) a few days back.

Update on projects

• RITES has received a letter of intent from Bharat Electronics Ltd. for the design, project management consultancy (PMC) services, and construction of a mass manufacturing facility at Palasamudram, Andhra Pradesh. The estimated project cost is INR 177.23 crore.
• L&T’s Hydrocarbon Offshore vertical secured an ultra-mega order from a key Middle East client, involving offshore engineering, procurement, construction, and facility upgrades, reinforcing its global leadership in engineering, procurement, construction, installation, and commissioning (EPCIC).
• KEC International secured new orders worth INR 1,509 crore across its transmission, transportation, and cables segments, including a key project under Indian Railways’ Kavach system and significant international contracts.
• RITES Ltd. and NABCONS signed an MoU to jointly undertake infrastructure and rural development projects in India and overseas, leveraging their expertise in transport, agriculture, sustainability, and project management.
• NCC Limited bagged three key government infrastructure orders worth INR 3,060 crore in July 2025, spanning buildings and electrical works, strengthening its project pipeline for FY’26.
• L&T’s Minerals and Metals unit won a large engineering, procurement, and construction (EPC) contract from Hindustan Zinc for a zinc cathode production facility at Debari, Rajasthan, further cementing their long-standing partnership.

Factors behind market dynamics

1. IF rebar prices exhibit mixed trends w-o-w: Induction furnace (IF) rebar prices showed mixed trends w-o-w across key Indian markets. Following decent bookings in the previous week, trade activity slowed as buyers resisted higher prices. Mills largely maintained list prices while offering limited trade discounts to clear inventory. Semi-finished steel prices declined w-o-w, with inventory levels ranging between 10-15 days across regions. IF rebar prices increased by INR 900/t ($10/t) w-o-w to INR 44,600/t ($510/t) exw-Mumbai as on 1 August 2025.

July witnessed healthy bookings as prices bottomed out. Furthermore, market participants expect a slight uptick in prices in the near term.

The BF-IF rebar price gap narrowed w-o-w to around INR 3,000-3,500/t ($34-40/t) in Mumbai. IF rebars hold a dominant 65-70% market share in India. The narrowing price spread was one of the major reasons for the hike in BF-rebar trade prices this week.

2. Raw material prices rise w-o-w: BigMint’s Odisha iron ore fines (Fe 62%) index rose by INR 150/t ($2/t) w-o-w to INR 5,350/t ($61/t) ex-mines on 26 July 2025. Odisha iron ore prices firmed up this week, following the recent Odisha Mining Corporation (OMC) auction, where bids rose significantly amid sustained demand. Industry participants noted that the limited availability of material kept price tags on the higher side, with robust domestic and export demand supporting the bullish trend.

For August sales, India’s NMDC raised prices of DR CLO (Fe 67%) by INR 450/t ($5/t) to INR 6,850/t ($78/t) and fines (Fe 64%) by INR 400/t ($5/t) to INR 5,250/t ($60/t) FOR Bacheli, inclusive of levies.

Australian premium hard coking coal (PHCC) prices rose by $2/t w-o-w to $192/t CNF Paradip.

Outlook
Market participants expect trade prices to stay firm in the near term following price hikes by mills for August and a rise in IF-rebar prices.