The domestic steel market remained under pressure in late October, with rebar prices sliding to a five-year low due to weak festive-season demand and higher inventory levels. Trade-level blast furnace (BF) route rebar prices in Mumbai decreased from ₹46,900/t to ₹46,800/t, a smaller 0.21% week-on-week (w-o-w) decline. Rebar prices in the Mumbai region on the IF route also fell from ₹42,200/t to ₹41,300/t, translating to a sharper 2.13% fall on a week-on-week basis.

In the week prior to Diwali, primary mills reduced the list prices and also offered price discounts due to weak trading sentiment. The festive season had subdued buying across the bulk of regions as buying was largely limited to immediate needs.

Meanwhile, induction furnace (IF) rebar prices remained steady in the major markets themselves, with only minor declines elsewhere experienced. Trading activities remained limited over the Diwali holidays. Market participants followed cautious buying behaviour with low turnover as they are still in a "wait-and-see" approach during the festive lull.

Outlook:

Market sentiment is anticipated to become positive after Diwali, with a return to construction activities and potentially improving buyer interest. However, the recovery must be sustained by infrastructure spending momentum, raw material cost trajectory, and the mill’s ability to manage high levels of inventory.