Indian rebar demand remains strong, driving prices up by INR 500-1,000/t ($6-12/t) this week as supply shortages persist in the primary segment, notes Kallanish.

Primary rebar (12-32mm, IS 1786 Fe 550D) is assessed at INR 52,500-53,000/t, with further hikes expected in March. The first week of the month is likely to provide a clearer market trend.

In the secondary market, 12-25mm IS 1786 Fe 500D rebar prices stand at INR 44,500-45,000/t ex-Raipur.

Both segments have witnessed a sharp INR 2,000-2,500/t increase over the past two weeks. Despite price hikes by primary mills, supply shortages continue to impact distributor pricing, keeping market sentiment cautious. The shortage stems from production cuts in recent months due to subdued demand.

The recent demand uptick is attributed to improved working capital availability for builders and prolonged project completion delays, according to market participants.

“The rebar market momentum, initially expected in April, has arrived earlier than anticipated. It’s a welcome relief after difficult months. Demand in North India is exceptionally strong, while in the West and South, price increases are sentiment driven. In the East—India’s rebar hub—demand has improved compared to previous months,” says a Mumbai-based distributor.

While demand has strengthened since January, constrained supply continues to limit transaction volumes. "Distributors are adjusting rates based on availability. This uptrend is expected to persist, but we anticipate clearer price direction in early March," remarks a Delhi-based distributor.