The Domestic rebar market is facing headwinds this week, driven by weak demand, volatile raw material prices, and logistical challenges caused by heavy monsoon activity across the country. As per the data analysis, both the IF and BF rebar routes have witnessed a downfall, with major price corrections across various key regions.

India's IF route finish long steel is still seen under pressure this week. Deteriorating inquiries, sluggish construction activity, and uncertain raw material pricing, particularly in sponge iron and billets, have led to low booking volumes. Few bookings were seen,  but those were only from buyers who needed it on an immediate basis. Most regions reported declines of ₹100–1,000/t on a weekly basis. However, Raipur stood out as an exception, where despite the overall downtrend, prices inched up by ₹ 200/t on a weekly basis, even though they had earlier dropped by ₹500/t mid-week before rebounding slightly toward the weekend. The price movement in Raipur is the combination of localized demand and short-term supply tightness, though overall market sentiment remained cautious. Rebar Prices for Fe 500 grade were assessed between ₹39,700–40,100/t ex-works Raipur and ₹43,200–43,800/t ex-works Jalna.

Due to the ongoing monsoon season, manufacturers were also forced to reduce offers to stimulate sales and clear stockpiles.

In the raw material market, billet prices also felt the heat as the prices declined by ₹200–700/t across key regions, with the sharpest fall of ₹ 700/t reported in Chennai. Sponge iron prices observed a mixed trend, mostly dropping by ₹300–500/t across regions, while Bellary and Ramgarh bucked the trend with slight increases of ₹50–100/t.

Outlook:

As per the current market situation, Rebar prices are expected to remain under pressure in the short term, as monsoon-related disruptions continue to affect construction activity, logistics, and material movement across the country. The upcoming festive season may further reduce buying momentum. Unless there is a notable shift in weather conditions or a sharp recovery in demand post-monsoon, both IF and BF route rebar prices are likely to see limited upside, with most transactions continuing on a need-only basis.