Indian rebar prices remain under downward pressure as demand slows and raw material prices decline, reports Kallanish.

In the secondary market, prices for 12-25mm IS 1786 Fe 500D grade rebar have decreased by INR 500-1,000/t ($6-12) this week, settling at INR 43,000-43,500/t ($510-515) ex-Raipur.

Similarly, in the primary market, 12-32mm IS 1786 Fe 550D grade rebar prices fell by INR 1,000/t to INR 54,000-55,000/t ($640-650) ex-Mumbai.

Despite the peak construction season, demand for rebar remains muted, raising concerns among market participants.

A key factor cited is funding issues for major infrastructure projects, which continue to dampen construction activity. Frequent delays and escalating costs in infrastructure projects have further exacerbated the situation.

“Executing infrastructure projects in India has been challenging due to poor planning, land acquisition delays, weak inter-agency coordination, political interference, and legal hurdles. Despite numerous project announcements, the construction pace remains slow,” explains a Delhi based industry expert.

Additionally, subdued sentiment in private construction is adding to the problem. "Amid global economic uncertainty, geopolitical tensions, and widespread job cuts especially in IT sector, individuals are hesitant to invest in home-building and are preferring to rather invest in equity market for good returns," notes another expert.

On the metallics front, domestic pig iron and DRI prices are at an 18-month low due to sluggish demand. As a result, rebar manufacturers are reducing prices to attract buyers without compromising much on their margins.

“With reduced feedstock costs and weak demand, steel mills are cutting prices further. There is still room for additional drops in rebar prices in the coming weeks,” concludes a Raipur-based manufacturer.