Indian rebar prices fall further on monsoon-hit demand

Rebar prices in India have continued to soften this week amid poor demand, slow-moving construction activity, and ample inventory, Kallanish notes.

Prices for 12-32mm IS 1786 Fe 550D rebar from primary mills are assessed at INR 51,000-51,500/tonne ($598-604/t) ex-Mumbai, while 12-25mm IS 1786 Fe 500D secondary rebar is trading at INR 41,000-41,200/t ex-Raipur. Both segments have seen a sharp correction by INR 5,000-6,000/t in recent weeks.

Although the informal deferment of the new BIS mandate for long steelmakers has brought temporary relief to Indian secondary rebar producers, demand remains too weak to support prices.

“Several major infrastructure projects, including flyovers, bridges, hospitals, roadworks, and pipeline laying, are proceeding slowly as both government and private contractors face operational disruptions due to the monsoon,” says a rebar trader in Mumbai.

An industry source adds that rains are halting key activities like pipeline laying and road asphalt laying. “Hot mix plants are shut, and heavy water flow is washing away construction materials, especially at bridge sites, posing safety risks,” the source explains.

While rebar prices have been under pressure, flat product prices, particularly hot rolled coil, have remained largely stable, supported by safeguard duties and the BIS mandate limiting non-compliant flat steel imports. As a result, the spread between rebar and HRC has narrowed.

“For nearly 9-10 months, rebar was priced well above HRC. But with rebar prices sliding and HRC holding steady, the spread has narrowed considerably. This may push mills to shift focus towards flat products if they offer better profitability,” a Delhi-based rebar trader tells Kallanish.

Source:Kallanish