India: BF rebar trade prices show mixed trends w-o-w as market remains dull

• Tight supply prompts price hikes in some regions
  
  
• IF rebar tags rise w-o-w amid moderate demand
  
  

Trade-level blast furnace (BF) rebar prices showed mixed trends w-o-w, as slow domestic demand weighed on markets, though some saw a hike in tags amid material shortages. Tight supply led some major private steel mills to raise their list prices to around INR 52,500-53,500/tonne (t) ($605-616/t) on landed basis, which drove up prices in certain markets.

Trade-level BF rebar prices were stable w-o-w at INR 52,700/tonne (t) ($607/t) exy in Mumbai, as per BigMint's assessment on 14 February 2025. Prices are exclusive of GST at 18%.

In the project segment, prices ranged within INR 50,000-51,000/t ($576-587/t) FOR Mumbai. Buyers were cautious, limiting their purchasing activity.

Project updates

Rail Vikas Nigam Limited (RVNL) has emerged as the Lowest Bidder (L1) for the "Survey, design, supply, installation, testing, and commissioning of KAVACH equipment and related works" across 790 RKM in the Hubballi and Mysuru Divisions of South Western Railway.

Factors behind market dynamics

1. IF rebar prices rise w-o-w: IF rebar trade prices rose w-o-w across markets amid moderate demand. As per BigMint's assessment, IF rebar prices rose by INR 700/t ($8/t) w-o-w to INR 47,800/t ($551/t) exw-Mumbai.

Although manufacturers increased prices, they also offered trade discounts, as certain buyers resisted procuring at higher levels. Inventory idling time reduced to around 10-15 days across markets. Meanwhile, prices of raw materials and semi-finished steel fluctuated within a limited range last week.

The price gap for BF-IF rebars stood at INR 4,500-5,000/t ($52-58/t) in the Mumbai market. Notably, IF rebars command a 65-70% share of the market.

2. Raw material prices edge lower w-o-w: BigMint's Odisha iron ore fines (Fe 62%) index fell INR 100/t ($1/t) w-o-w to INR 4,800/t ($55/t) on 8 February 2025. Although there was a price drop, Odisha's iron ore market remained largely stable, with improved trading activity. The rise in domestic pellet prices and active export deals in recent weeks boosted buying interest. Market participants observed increased inquiries from major buyers, which led to a positive market sentiment.

Additionally, Australian premium hard coking coal (PHCC) prices edged up by $2/t w-o-w to $199/t CNF Paradip.

Outlook

Trade prices of BF rebars may remain supported in the near term, as other steel manufacturers may lift offers amid material shortages and as the end of the financial year approaches.