India: BF-route rebar prices extend decline as weak demand continues

• BF-route rebar prices decline to 6-month low
  
  
• BF-IF rebar price spread narrowed further to around INR 6,000/t
  
  

India's blast furnace (BF)-route rebar market extended its downward trend this week, with trade-level prices (distributor-to-dealer) easing by INR 1,200/t ($13/t) w-o-w to INR 51,700/t ($547/t) exy-Mumbai as of 19 June 2026, according to BigMint assessments. The latest correction has pushed prices to their weakest level in six months, a range last recorded in mid-January.

The decline was primarily attributed to restrained purchasing activity, elevated inventory positions exceeding 30 days at distributor stockyards, and a cautious buying approach adopted by participants across both retail and project segments. Demand remained largely requirement-driven in most regions, while southern markets continued to witness notably sluggish offtake. Steady raw material prices, coupled with the availability of competitively priced induction furnace (IF)-route rebar, further intensified pressure on BF rebar values by widening the pricing differential between the two routes.

In the project segment, transactions were reported at INR 49,000-51,000/t ($519-540/t) landed. Buyers continued to seek aggressive price negotiations amid subdued construction activity and limited visibility on near-term demand recovery.

Factors driving market dynamics

1. IF-route: IF -rebar trade prices witnessed a mixed trend across major markets this week, with prices firming up in Raipur, Raigarh, and Delhi, while most other regions either remained stable or recorded marginal corrections. Trading activity remained limited, as buyers continued to follow a need-based procurement approach. Price gains in the central region were driven by an increase in electricity costs in Chhattisgarh, which increased production costs and prompted mills to revise offers upward. However, overall demand remained slow, restricting trade volumes. Inventories across most regions stood at around 10-15 days, while dispatches remained smooth. In Mumbai, IF-route rebar trade prices fell by INR 100/t ($1/t) w-o-w to INR 45,700/t ($479/t) ex-works as of 19 June.

Meanwhile, the BF-IF rebar price spread in Mumbai narrowed further to around INR 6,000/t ($63/t). The differential, which was close to INR 10,000/t ($106/t) at the beginning of June, has compressed sharply, improving the competitiveness of BF-route material.

2. Raw materials prices fall: Key BF-route raw material prices remained on a downward trajectory during the week, easing cost pressures on integrated steelmakers. BigMint's Odisha iron ore fines (Fe 62%) index declined by INR 150/t (@2/t) w-o-w to INR 4,950/t ($53/t) ex-mines as of 13 June, while premium hard coking coal (PHCC) prices softened by $2/t w-o-w to $266/t CNF Paradip. The correction in input costs is expected to provide mills with greater pricing flexibility amid a cautious demand environment.

Project updates

India's pipeline for future construction activity remained firm, with recent project announcements including Ashoka Buildcon securing the Raipur Gems & Jewellery Park project, Patel Engineering receiving an INR 126.37 crore irrigation LoA, GR Infraprojects progressing on the INR 1,898 crore Sidhi-Singrauli Rail Link, and Waaree Renewable's solar EPC contract rising to INR 1,044.69 crore.

Outlook

BF-route rebar prices are expected to remain under pressure in the near term amid cautious buying and ample inventories, though improving project activity and lower raw material costs could provide gradual support to demand.