India: BF rebar trade prices drop w-o-w in subdued market

• IF rebar prices range-bound amid need-based buying
  
  
• Falling raw material tags fail to support rebar prices
  
  

Trade-level blast furnace (BF) rebar prices dropped w-o-w across major Indian markets amid subdued domestic demand. Demand in the trade channel has remained slow this month, as buyers have moved to the sidelines amid weak market sentiments. Leading mills have lowered their list prices for end-January dispatches, sources infromed.

However, trade-level BF rebar prices remained unchanged w-o-w at INR 52,200/tonne (t) ($605/t) exy in Mumbai in particular, as per BigMint's assessment on 24 January 2025. Prices are exclusive of GST at 18%.

In the project segment, prices hovered at around INR 48,500-49,500/t ($562-574/t) FOR Mumbai. Buyers were cautious and engaged in need-basis procurement amid a fall in prices.

Update on projects

Kalpataru Projects International Limited (KPIL) and its subsidiaries secured new orders worth INR 2,038 crore, including transmission and distribution projects in India and abroad, as well as a building project in India.

Factors behind market dynamics

1. IF rebar prices range-bound w-o-w: Induction furnace (IF) rebar trade prices remained range-bound w-o-w amid need-based buying across markets. Manufacturers offered trade discounts to liquidate the material. Inventory idling time was at around 12-14 days across markets. As per BigMint's assessment, IF rebar prices edged down by INR 100/t ($1/t) w-o-w to INR 46,900/t ($544/t) exw-Mumbai.

The price gap for BF-IF rebars stood at INR 5,000-5,500/t ($58-64/t) in the Mumbai market. Notably, IF rebars command a 65-70% share of the market.

2. Raw material prices drop w-o-w: BigMint's Odisha iron ore fines (Fe 62%) index dropped INR 200/t ($2/t) w-o-w to INR 5,000/t ($58/t) on 18 January 2025. Odisha Mining Corporation (OMC) auctioned 2.667 mnt of iron ore, with fines sold at INR 2,550-8,800/t ($30-102/t). Lower bids were seen amid a higher offered volume and a shift in preference towards lumps. Sponge iron prices fell by INR 200/t ($2/t) w-o-w, while billet tags remained stable.

Australian premium hard coking coal (PHCC) prices fell by $4/t w-o-w to $205/t CNF Paradip.

Outlook

Market participants expect a slow market in the coming days, with prices expected to trend downwards.