Indian domestic rebar prices, particularly among small and medium-sized mills, have paused their upward trend this week as stockists and market participants take a cautious approach, closely monitoring developments in China’s steel market. Rebar prices in this segment dipped slightly by INR 300-500/t (USD 4-6) over the week.
12-25mm IS 1786 Fe 500D grade rebar, produced via the induction furnace route, is now priced at INR 46,000-46,200/t (USD547-550) ex-Raipur.
The market saw a slight correction after three consecutive weeks of price increases. Despite improved demand from the construction sector compared to last month, various factors such as the festive season, liquidity constraints, labor shortages in certain states, and the volatility in China's steel market have caused buyers to become more cautious.
With sufficient restocking already done and falling domestic DRI and scrap prices, buyers are now reassessing the situation. Although domestic iron ore prices continue to rise, weak demand from China has kept the market relatively stagnant. However, there is optimism that a significant downturn in prices is unlikely.
Among integrated steel producers, prices have remained stable this week. 12-32mm IS 1786 Fe 550D grade rebar, produced via the blast furnace route, is priced at INR 54,000-55,000/t (USD 645-655) ex-Mumbai. Supply shortages, particularly due to the closure of RINL’s (Rashtriya Ispat Nigam Ltd) blast furnace, have helped support prices. Distributors anticipate this support will continue in the coming weeks, driven by rising demand and constrained supply.
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