- Material availability tightens in distribution channel
- Rising order backlogs at mills support project prices
Trade-level BF rebar prices rose w-o-w across major Indian markets, supported by recent price hikes announced by primary mills, improved trading activity, and tight material availability in the distribution channel. Primary producers raised rebar list prices by up to INR 1,000/tonne (t) ($11/t) during the week, taking landed prices to around INR 52,000-53,000/t ($577-588/t).
As a result, trade-level BF rebar prices increased by INR 600/t ($7/t) w-o-w to approximately INR 52,500/t ($583/t) exy-Mumbai, excluding 18% GST.
Strong offtake in the trade segment and reduced supplies led to shortages in select sizes, pushing offers higher. In the projects segment, prices were assessed at INR 51,500-52,500/t ($571-582/t) on a FOR basis. Healthy order bookings and rising backlogs at mills continued to support market sentiment. Meanwhile, offers were also heard at around INR 53,000/t ($588/t) during the end of the week.
Project updates
- IRB Infrastructure Trust received a letter of acceptance (LOA) from the National Highways Authority of India (NHAI) for the TOT-18 Chandikhole-Bhadrak NH-16 project in Odisha, strengthening its asset base and toll revenue outlook
- GR Infraprojects announced the provisional completion of its Bilaspur-Urga NH-130A four-laning project in Chhattisgarh, with 69.015 km declared fit for commercial operation from 30 June 2025.
- Rail Vikas Nigam Limited (RVNL) has received an LOA from East Coast Railway for setting up a 200-wagon capacity periodic overhauling (POH) workshop at Kantabanji, valued at about INR 201 crore, to be executed over 18 months.
Key highlights of market dynamics
1. IF-rebar prices drop w-o-w: IF-route rebar prices declined w-o-w after a significant price hike across locations over the past two weeks. Buyers adopted a wait-and-watch approach, unwilling to procure material at elevated offers in both the finished steel and semi-finished steel segments. Trading activity softened in the spot market. In response, manufacturers reduced offers and extended attractive discounts, depending on previous booking volumes and payment terms. Notably, IF rebar prices dropped by INR 1,100/t ($12/t) to INR 47,700/t ($529/t) exw-Mumbai. Given the current scenario, prices are likely to soften in the near term.
The BF-IF rebar price spread in Mumbai stood at INR 4,500-5,000/t ($50-55/t). IF rebars continue to dominate the Indian market with a 65-70% share.
2. Raw materials prices edge up w-o-w: Prices of major raw materials increased w-o-w, supporting BF rebar prices. BigMint’s Odisha iron ore fines (Fe 62%) index edged up by INR 50/t ($0.55/t) w-o-w to INR 5,800/t ($64/t) ex-mines. Iron ore prices in the Odisha market remained firm last week, as assessed on 3 January, supported by active trading activity and a sharp improvement in downstream steel prices. Market participants noted that trades are now getting concluded at higher levels, while material availability remains limited.
Australian premium hard coking coal (PHCC) prices were stable w-o-w at $231/t CNF Paradip.
Outlook
Rebar prices are expected to continue climbing up next week due to strong demand in the trade and projects segments, which is expected to encourage mills to hike list prices further. Additionally, a private steelmaker is expected to raise offers by INR 1,000/t ($11/t) next week, which will support higher trade prices.
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