- Supply shortages support BF prices
- IF rebar tags rise amid active trades
Trade-level blast furnace (BF) rebar prices rose w-o-w, following a hike by major primary steel producers. Additionally, limited material availability in the distribution channel also led to higher offers.
Major private steel mills increased rebar prices by INR 500-750/tonne (t) ($6-8/t) this week. Post revision, list prices hovered at INR 54,500-55,000/t ($632-638/t) on landed basis.
Trade-level BF rebar prices increased by INR 600/t ($7/t) w-o-w to INR 55,000/t ($638/t) exy in Mumbai, as per BigMint’s assessment on 21 March 2025. Prices are exclusive of GST at 18%.
In the projects segment, prices hovered at around INR 53,500-54,500/t ($621-632/t) FOR Mumbai.
Update on projects
- KEC International Ltd secured new orders worth INR 1,267 crore across businesses. Transmission and distribution (T&D) projects include 800 kV high voltage direct current (HVDC) and 765 kV transmission lines from Power Grid Corporation of India Limited (PGCIL) and supply contracts in the Americas, while the cables division received orders for cables and conductors globally.
- G R Infraprojects Limited was selected as the preferred bidder for the construction of the Agra-Gwalior Greenfield Road project.
- Larsen & Toubro’s Buildings and Factories (B&F) vertical secured a large order from Brigade Group to construct luxury residential and commercial towers in Hyderabad and Chennai. The projects include Brigade Gateway Residences, World Trade Centre (Hyderabad), Brigade Altius, and Morgan Heights (Chennai), all executed on a design-and-build basis.
- NCC received a Letter of Acceptance from the Andhra Pradesh Capital Region Development Authority for constructing roads, drains, water supply, sewage, utility ducts, and avenue plantation at Zone-12 villages, Amaravati Capital City, Andhra Pradesh.
Factors behind market dynamics
1. IF rebar prices rise w-o-w: Induction furnace (IF) rebar trade prices increased w-o-w amid strong procurement across markets. Mills increased their list prices and sold sufficient quantities in the market. Finished steel tags were also supported by an uptick in semi-finished steel prices and positive market sentiments. Inventory idling time decreased to 7-8 days, with no selling pressure on mills. According to BigMint’s assessment, IF rebar prices stood at INR 49,400/t ($/t) exw-Mumbai on 20 March 2025.
The BF-IF rebar price gap stood at around INR 5,500-6,000/t ($64-70/t) in Mumbai, where IF rebars hold a dominant 65-70% market share.
2. Raw material prices show mixed trends: BigMint’s Odisha iron ore fines (Fe 62%) index remained stable w-o-w at INR 5,100/t ($59/t) on 13 March amid reduced trading activity. Market participants observed softened demand, resulting in limited transactions. Meanwhile, miners offered material selectively, with only a few high-priced offers available.
Australian premium hard coking coal (PHCC) prices dropped by $5/t w-o-w to $194/t CNF Paradip.
3. Global longs market faces pressure: The global long steel market faced unprecedented challenges due to rising trade measures and tariffs, creating uncertainty and volatility. While China’s production cuts offered hope, export pressures persisted. EU mills criticised revised safeguard measures, and US markets faced declining demand and increasing competition. Meanwhile, rising scrap prices have pushed electric arc furnace (EAF) mills toward semi-finished imports, intensifying cost pressures globally.
Outlook
Trade prices are likely to show an uptrend and remain supported in the near term amid ongoing material shortages.
Leave a Reply