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India: Trade-level BF rebar prices drop w-o-w amid subdued demand

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BigMint Bureau

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18 Jan 2025, 12:12 IST

India: Trade-level BF rebar prices drop w-o-w amid subdued demand

Uncertain market dynamics make BF rebar buyers wary

IF rebar producers slash prices to liquidate material

Trade-level blast furnace (BF) rebar prices dropped w-o-w across Indian markets, owing to tepid demand. Buyers stayed on the sidelines and adopted a wait-and-watch approach due to uncertainty regarding market direction.

Trade-level BF rebar prices dropped by INR 300/tonne (t) ($3/t) w-o-w to INR 52,200/t ($603/t) exy-Mumbai, as per BigMint's assessment on 17 January 2025. Prices are exclusive of GST at 18%.

In the project segment, prices hovered at around INR 49,500-50,500/t ($572-583/t) FOR Mumbai. Demand from end-users remained soft this week.

Update on projects

G R Infraprojects Limited emerged as the L-1 bidder for the development of an access-controlled Pune Ring Road (East) in Maharashtra on an engineering, procurement, and construction (EPC) mode package.

Factors behind market dynamics

1. IF rebar prices drop w-o-w: Induction furnace (IF) rebar trade prices dropped w-o-w amid slow buying activity across markets. Manufacturers reduced their list prices and offered discounts to liquidate material. Inventory idling time was at around 10-12 days across markets. However, in Mumbai in particular, IF rebar prices remained unchanged w-o-w at INR 47,000/t ($543/t) exw.

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 show mixed trends: Odisha iron ore fines Fe62% prices remained stable w-o-w at INR 5,200/t ($60/t) ex-mines on 11 January 2025, with steelmakers procuring material on need-only basis. Some miners secured deals for higher-grade lumps in January, boosting market sentiment slightly, though major buyers stayed cautious.