Posted on 13 Mar 2025
The Indian rebar market has been witnessing a price rally for a month, with prices in the traders’ market rising by INR 500-1,000/tonne ($6-12/t) weekly, as buyers hoard material fearing further increases and supply constraints due to production cuts, notes Kallanish.
Primary rebar (12-32mm, IS 1786 Fe 550D) is now assessed at INR 55,500-56,000/t ex-Mumbai, while in the secondary market, 12-25mm IS 1786 Fe 500D rebar is priced at INR 44,500-45,000/t ex-Raipur.
Market participants attribute the price rally to unexpected demand before the fiscal year ends in March 2025, coupled with production cuts by steel mills.
"As prices had been under pressure for several months, steel mills reduced production to balance supply-demand dynamics. However, demand surged unexpectedly post-Delhi elections and with a slight improvement in builders' working capital. This mismatch is now driving up prices," says a rebar trader in Delhi.
A Mumbai-based trader adds, “once prices rose in mid-February and safeguard duty rumours gained traction, distributors and stockists began hoarding rebars, creating a shortage and pushing up prices. I expect the high price trend to continue until March-end.”
He further notes that even in April, mills and furnaces typically reduce production due to high temperatures impacting labour productivity. "A 10-hour shift often shortens to 8 hours, further restricting supply. Even if demand eases, reduced production will likely support current price levels and prevent a major price drop.”
Simultaneously, the mini steel sector is undergoing a major transformation, moving beyond rebar and structural to focus on bars, rods, and special steels. This shift aims to diversify offerings, enhance profitability, and cater to evolving market demand.
With rising competition in the rebar segment and increasing demand for high-value special steels across automotive, infrastructure, and engineering sectors, producers see an opportunity for higher margins and long-term growth.
Additionally, MOEF (Ministry of Environment, Forest, and Climate Change) clearances have been granted for up to 10mt of capacity expansion by just 3-4 new players, signalling significant upcoming supply additions.
This transformation is expected to reshape the rebar market, intensifying competition and pushing traditional producers to innovate. The increased focus on special steels could attract new end-user industries, impact raw material sourcing, and shift pricing dynamics.
Source:Kallanish
