- Buyers show resistance to higher prices
- Iron ore holds firm, coking coal edges up
Indian trade-level BF-rebar prices moved within a narrow range in the week ending 19 December, with fluctuations limited to the INR 100-300/tonne (t) range. Prices also remained stable in some markets.
Buying activity saw marginal improvement following early-month price hikes, though overall, distribution channel demand remained subdued. Buyers also showed resistance to procuring material at higher prices, according to market participants. The gap between bids and offers stood at INR 400-500/t.
Trade-level BF rebar prices were unchanged w-o-w at INR 47,500/t ($527/t) exy-Mumbai, as per BigMint’s benchmark assessment on 19 December 2025. Prices are exclusive of GST at 18%.
In the projects segment, prices hovered between INR 45,500-47,000/t ($504-521/t) FOR Mumbai. Demand weakened due to construction slowdowns and government funding delays, but procurement is expected to pick up as market conditions improve.
Rebar inventories at mills dropped slightly by nearly 4% in the middle of December compared to the start. The drop in inventory levels indicates improved dispatches from mills to the project segment rather than a notable recovery in spot market demand.
Update on projects
- Dilip Buildcon has received a letter of Acceptance (LOA) from NALCO for the development and operation of Pottangi bauxite mines under a mine developer and operator (MDO) contract valued at about INR 5,000 crore.
- Ashoka-Aakshaya JV has received an LOA from the Brihanmumbai Municipal Corporation (BMC) for constructing a major Mumbai flyover, with a project value of INR 1,041.44 crore, including GST.
- Ashoka Buildcon received an INR 447.21 crore additional work order from BMC for the Sion-Panvel Highway flyover project, raising the total project value to INR 1,573.79 crore.
- IRB Infrastructure Trust’s special purpose vehicle (SPV) executed a concession agreement with NHAI for the 366-km TOT-17 highway project in Uttar Pradesh, ensuring long-term tolling and revenue visibility.
- GR Infraprojects announced the provisional completion of its eight-lane Shirsad-Masvan Expressway project in Maharashtra, enabling commercial operations under the Bharatmala Pariyojana hybrid-annuity model (HAM).
- KEC International won INR 1,150 crore orders in India, including its largest-ever T&D project and additional civil works for a thermal power plant.
- Kalpataru Projects International secured new orders worth INR 2,003 crore across buildings, factories, and power transmission projects in India and overseas markets.
- L&T’s Buildings and Factories business won major engineering, procurement, and construction (EPC) orders across India, including a global museum, FIFA-compliant stadium, and luxury high-rise residential towers.
- Rail Vikas Nigam Limited has received an LOA worth INR 165 crore from Northeastern Railway for the construction of a major bridge substructure in Bihar, to be completed in 24 months.
Factors behind market dynamics
1. IF rebar prices rise w-o-w: IF rebar trade-level prices increased w-o-w across major Indian markets, supported by improved trading activity and firm sponge iron and billet prices. Healthy sales led to better material offtake, easing inventories to around 10-12 days. However, buyers showed some caution towards the weekend amid higher prices. As of 19 December 2025, IF rebar prices rose by INR 600/t ($7/t) w-o-w to INR 45,200/t ($501/t) exw-Mumbai.
The BF-IF rebar price spread in Mumbai remained at approximately INR 2,500-3,000/t ($30-36/t). IF rebars continue to dominate the Indian market with a 65-70% share.
Despite the recent uptick, balanced demand-supply dynamics and cautious buyer sentiment may keep prices largely range-bound in the near term.
2. Raw material prices remain firm w-o-w: Prices of major raw materials remained firm w-o-w. BigMint’s Odisha iron ore fines (Fe 62%) index remained stable w-o-w at INR 5,700/t ($63/t) ex-mines. Iron ore prices in Odisha stayed firm during the week, supported by bulk bookings from major miners and strong participation in recent auctions, enabling producers to maintain offers despite mixed downstream steel market sentiments.
Australian premium hard coking coal (PHCC) prices edged up by $2/t w-o-w to an average of $223/t CNF Paradip.
Outlook
Trade prices of BF-rebars are expected to rise in the rest of the month, with mills planning hikes of INR 500-1,000/t. This follows recent increases in IF-rebar prices, which have provided additional support to BF segment pricing amid favourable market dynamics.
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