Indian Rebar Market Firms Amid Raw Material Cost Push; Mixed Trend Across Regions

Key Highlights:

• Weekly rebar prices surged up to ₹900/t in Ahmedabad; monthly trend still shows declines.
• Cost-push from sponge iron and billet prices driving rebar rate hikes.
• Monsoon limits construction in some areas, but urban demand stays stable.
• US and Asian rebar markets show mixed-to-flat trends; India remains region-driven.

Price Movement Across Indian Markets

• As per the report published by Bigmint, Fe500 rebar prices showed a mixed trend across key Indian markets.
• On a day-on-day (d-o-d) basis, prices rose by Rs. 100–600/ton, with Jalna witnessing the highest single-day hike of Rs. 600/t, driven by stronger local buying and cost-push pressures.
• Looking at the week-on-week (w-o-w) movement, several regions reported sharp gains:
  1. Ahmedabad led with a +Rs. 900/t jump followed by Jalna (+Rs. 600/t), Raipur (+Rs. 500/t), and Raigarh (+Rs. 400/t). 
  2. These increases point to improved market sentiment and inventory restocking by buyers.
• However, Mumbai (-Rs. 100/t), Hyderabad (-Rs. 500/t), and Chennai (-Rs. 200/t) recorded price corrections, indicating weaker regional activity.
• On a month-on-month (m-o-m) basis, rebar prices declined uniformly across markets by up to Rs. 1,000/t, with notable falls in Mandi Gobindgarh (-Rs. 700/t), Raigarh (-Rs. 700/t), and Chennai (-Rs. 700/t), reflecting the after-effects of the June market slowdown.

Cost Push and Construction Demand Trends

• The current market trend is being supported by moderate mill bookings, especially in the rebar segment. The price increase is largely underpinned by a cost-push from raw materials like sponge iron and billets, which have seen noticeable upticks in recent sessions.
• Mills have responded by adjusting offers upward, and buyers, anticipating further hikes, have been accepting these revised prices, particularly in the central and western regions. Construction activity, though patchy due to monsoon-related disruptions in some zones, remains relatively stable in urban and semi-urban infrastructure projects.
• On the supply side, availability remains steady, but not excessive, which has helped maintain price firmness. Some mills have also reported planned maintenance shutdowns, reducing overall output temporarily and tightening supply in select markets like Raipur and Durgapur.

Market News: Global Rebar Price Signals

• Global rebar and TMT markets have shown mixed signals amid varying regional demand and price movements. In the United States, leading steel producers have increased rebar and wire rod prices by $60 per short ton.
• Additionally, the US Midwest has introduced a new differential index between shredded auto scrap and rebar, offering valuable insights into steel production economics and scrap-based manufacturing trends.
• In Asia, stability continues to dominate several regional markets. Iran’s billet and rebar prices held steady amid muted domestic and export demand, with billet offers ranging between $420–430/t FOB.
• Similarly, Taiwan’s largest rebar producer, Feng Hsin Steel, has kept rebar and scrap prices unchanged due to weak local demand, despite a marginal uptick in global scrap values. 
• In the UAE, Emirates Steel extended its price rollover for the sixth consecutive month for August deliveries, signaling continued market stagnancy.
• Meanwhile, in India, the induction furnace-based steel sector saw varied rebar pricing with day-on-day adjustments ranging from INR 50 to INR 500 per tonne, suggesting regionally driven market dynamics and moderate buying activity. 

Market Expectations and Short-Term Outlook

• In the short term, market participants anticipate rebar prices to remain firm to slightly bullish, driven by: Continued raw material price escalation, especially in billets and sponge iron, Inventory restocking by stockists preparing for post-monsoon demand, Limited production from certain mills owing to maintenance or cost constraints.
• However, regional variations will persist, especially in areas facing monsoon disruptions or construction delays. A clearer price direction is expected to emerge by early August as construction demand picks up pace and input costs stabilize or escalate further.