- Weak demand leads to need-based buying
- IF tags range-bound amid moderate trades
Trade-level blast furnace (BF) rebar prices increased w-o-w across major Indian markets, as some private steel mills announced a hike in list prices, by up to INR 1,500/tonne (t) ($17/t), during the week. Post revision, list prices hovered within INR 57,000-58,500/t ($662-680/t) on landed basis, BigMint heard from sources. Demand in the distribution channel was need-based, impacted by lower buying interest. However, ongoing material shortages kept prices supported.
Trade-level BF rebar prices inched up by INR 200/t ($2/t) w-o-w to INR 57,200/t ($665/t) exy in Mumbai, as per BigMint’s assessment on 11 April 2025. Prices are exclusive of GST at 18%.
In the projects segment, prices hovered at around INR 56,500-57,500/t ($657-668/t) FOR Mumbai. Demand from end-users remained moderate this week.
Update on projects
Rail Vikas Nigam Limited (RVNL) emerges as the Lowest Bidder (L1) from Southern Railway Normal course of business of the Company.
Factors behind market dynamics
1. IF rebar prices range-bound w-o-w: Trade prices of induction furnace (IF) rebars moved in a narrow range on a w-o-w basis amid moderate buying activity. According to BigMint’s assessment, IF rebar prices declined by INR 200/t ($2/t) w-o-w to INR 49,400/t ($574/t) exw-Mumbai as on 11 April 2025.
Mills continued to face no significant inventory pressure, with inventory holding periods averaging 7-8 days. Trade prices are expected to remain range-bound in the near term.
The BF-IF rebar price gap increased to INR 7,500-8,000/t ($87-93/t) in Mumbai, where IF rebars hold a dominant 65-70% market share.
2. Raw material prices range-bound w-o-w: BigMint’s Odisha iron ore fines (Fe 62%) index remained firm w-o-w at INR 5,200/t ($60/t) on 5 April 2025. Iron ore prices in Odisha were mostly stable in the first week of FY’26, with a minor rise in high-grade lump tags. Market activity was moderate, and many miners awaited fresh environmental clearances (ECs) before announcing fresh offers, though some have declared prices, hinting at increased activity.
Australian premium hard coking coal (PHCC) prices increased by $2/t w-o-w to $186/t CNF Paradip.
Outlook
Trade prices are likely to remain steady in the near term, following the price hike by primary mills and material shortages in the market.
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