Indian rebar prices see modest increase

Indian rebar prices saw a slight increase this week, with sellers reporting a rise in inquiries, notes Kallanish.

Large producers have raised prices by INR 500-1,000/t ($6-12/t), but distributors are yet to pass these increases on to customers.

The price for 12-32mm IS 1786 Fe 550D grade rebar was assessed by Kallanish at INR 52,000-52,500/t ex-Mumbai.

In the secondary market, prices remained stable, with 12-25mm IS 1786 Fe 500D grade rebar priced at INR 43,400-43,200/t ex-Raipur.

Post-New Year holidays, market activities are gradually returning to normal, and rebar inquiries have increased.

"Key producers like JSW and SAIL have raised their rebar prices, indicating better demand than last month. We are also seeing more inquiries from government projects and housing sector. I believe rebar prices will remain largely stable this month," says a Mumbai-based rebar trader.

A rebar manufacturer says: "Rebar prices are likely to rise in the coming days, as billet-to-rebar conversion margins have significantly declined. Margins, which were previously INR 3,500–4,000/t, have dropped to below INR 2,500/t, worsened by high overhead costs, squeezing profitability for manufacturers."

Tepid rebar demand in December had put pressure on prices. Data from the Centre for Monitoring Indian Economy (CMIE) shows a 22% year-on-year drop in the total value of new project announcements during the December 2024 quarter, falling to INR 6 trillion.

The value of completed projects also saw a sharp 52% decline y-o-y, dropping to under INR 1 trillion ($11.3 billion). Both new and completed project values remain below pre-pandemic levels from 2019.

Source:Kallanish