Posted on 05 Dec 2025
India’s rebar market continued its upward trend this week as mills and traders opted for small but consistent price increases to keep buyers engaged, Kallanish learns from market.
Prices have risen INR 1,000-1,200/tonne ($11-13/t) over the past month amid firm raw material costs, controlled production and improving regional demand.
In the secondary market, trade prices for 12-25mm (IS 1786 Fe 500D) rebar are being heard at INR 39,000-40,000/t ex-stockist in Raipur, while primary rebar (12-32mm, IS 1786 Fe 550D) is heard at around INR 46,000-47,000/t in Mumbai.
Secondary rebar prices have strengthened across key hubs, supported by higher DRI costs and limited scrap availability in the north. Firm iron ore demand coupled with GST-raids in north have resulted in a domestic scrap shortage which is keeping raw materials cost support firm for induction-route mills.
Rebar procurement has improved gradually post-Diwali festival in October as contractors resumed work on pending infrastructure projects. Government departments are accelerating execution ahead of the March 2026 financial-year completion targets, prompting a rise in enquiries and restocking, informs market participants.
Traders say buyers remain sensitive to sharp hikes but are accepting moderate weekly adjustments.
Unlike flat steel where there is oversupply, rebar mills have cut down on production in past few months and are operating at only 65–70% capacity. “This is not a market where an abrupt hike works,” says a Mumbai-based distributor. “Mills are controlling output to avoid oversupply and are making small, steady increases to ensure buyers continue lifting material instead of stepping back.”
Eastern markets also gained support from rising DRI values, helping billet and rebar offers in Odisha and Jharkhand stay firm. Stockists reported healthy spot transactions through the week.
Primary mills are reflecting similar firmness. SAIL raised prices by around INR 500/t this week and is reported to be fully booked, with 8–32mm rebar sizes scarcely available in the spot market.
Mills are also tracking the INR 11,000/t spread between TMT and sponge iron in Raipur. “An INR 11,000 gap signals strong conversion margins for secondary mills,” comments a long steel trader. “A healthy INR 10,000–12,000/t spread is typically profit-friendly for induction-furnace units. The fact that mills can maintain this gap also indicates steady demand neither booming nor weak but stable enough that traders are not discounting aggressively.”
Industry participants expect the strategy of incremental hikes to continue. With costs firm, supply controlled and demand stable, sellers are likely to maintain their current pricing strategies than opt for a major hike that could disrupt procurement, sources add.
Source:Kallanish
