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The Indian rebar market is at the cusp of growth and may witness a dramatic surge in
demand, thanks to the government’s thrust on infrastructure and housing.
A glimpse at the product-wise classification in the Indian steel industry shows that among long steel
products, bars and rods as well as structurals make up for a lion’s share of the total. According to
available figures for FY18, bars and structurals comprise almost 44 MnT of the 45.10 MnT of long
steel products manufactured. That the country’s construction industry is heavily reliant on secondary
manufacturers is borne out by the fact that small and mid-sized manufacturers have produced 16. 53
MnT of reinforcement bars out of the nation’s total production of 26.24 MnT in FY18 – an eyebrow-
raising 62%. The rest has been produced by the integrated steel mills comprising the heavyweights
SAIL, RINL, Tata Steel, JSPL and JSW.
Rebars form the backbone of any reinforced cement concrete (RCC) structure, whether it is the
foundation, columns, beams or slabs, and their quality is critical in defining the overall quality of the
structure. Rebars are used in RCC constructions varying from large infrastructure projects like
bridges, ports, airports, urban infrastructure, industrial plants and commercial buildings to small RCC-
based individual house constructions. Chat with
TMT bars are the backbone of civil construction. They are deeply anchored into concrete to bear the Us
load of buildings, slabs, beams and columns. They should be able to withstand the furies of nature
such as windstorms and earthquakes. The consumption of rebars in India is currently estimated at
about 24 MnT per annum, valued at about INR 1.2 trillion.
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Considering the average steel intensity of about 10% by value in an RCC construction in India, the
total construction industry can be valued at 10 times the valuation of the rebar industry, which works
out to an astronomical INR 12 trillion per annum. These are current figures; with infrastructure
projects planned till 2025 or 2030, the figure is expected to swell in multiples. With such a large
construction industry corpus being critically dependent on the quality of steel rebars used, it is
imperative that all efforts are made to produce and promote the use of good quality rebars.
Although both the integrated and secondary players populate the rebar market, the latter outweighs
the former. Secondary manufacturers constitute around 55% of the rebars market in India. The use
of rebar grades and products has undergone remarkable changes of late. Though the IS:1786
building codes specify only Fe-415 for reinforced cement concrete, its usage is declining as the
market is shifting to higher grades. The construction industry has started adopting newer grades like
Fe500, Fe550, and Fe500-D. Similarly, on the application side, rebar use has been moving toward
higher value-added products like corrosion-resistant steel rebars, epoxy-coated, earthquake-resistant
and galvanised rebars.
Rebars with major diameters between 8mm and 25mm find application in buildings, bridges and
highways. With an estimated demand of around 40 million tonnes, the market is dominated by
secondary producers. While these producers manufacture rebars through processing of imported steel
scrap, the primary producers use iron ore as raw material.
Chhattisgarh and Maharashtra have been regarded as centres for TMT production, where many
additional capacities have been set up.
The Indian market is characterised by many regional players serving local customers at par or
discounted pricing compared to national players. But their acceptance among consumers is good,
resulting in high business volumes. Many large and small players have strengthened their presence in
the regional markets making the entry of national-level players difficult. Global consultancy Frost &
Sullivan forecasts India’s demand for rebars to hit 41.82 MnT by 2020-21.
Rebars have found application in construction particularly for their excellent bonding with cement,
superior weldability, excellent bendability and corrosion, fire and earthquake resistance qualities.
Corrosion resistance is one of the key features required of rebars used in humid climes where the
metal is prone to corrosion. All structural elements of concrete in coastal areas offer opportunities for
the use of rebars. With natural disasters causing irreparable damage, earthquake-resistant bars are
in demand.
Another major demand push for the rebar industry is the increasing awareness amongst buyers of a
quality product which will give a strong structure.
Producers like Tata Steel, SAIL, Vizag Steel, Jindal Steel and Power Limited and JSW Steel account for
a sizeable chunk of the rebars market, although a major share has been grabbed by the close to 500
other manufacturers concentrated in 16 clusters; for example, rolling mills in Mandi Gobindgarh
(Punjab) and Raipur (Chhattisgarh) as well as those close to ship-breaking yards. JSPL manufactures
its Jindal Panther-branded rebars out of its 1-mtpa facility in Patratu, Jharkhand.
JSW Steel’s flagship facility at Vijayanagar in Karnataka is not just one of the largest TMT bar mills in
the country with a production capacity of 1 MnT per annum but is also regarded as an institute of
steel-making technology. The company’s products have found application in key infrastructure
projects such as metro rail, airports, atomic power plants and expressways. The Long Products
Division of Tata Steel is the biggest rebar player in the country. Backed by superior process control Chat with
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and capabilities in product innovation, the company has replaced its Fe415 grade with Fe500 grade
rebars, thus leading to an 18% saving in steel consumption by weight for consumers.
“The demand for TMT bars is well spread out across the country. Annual consumption is almost 25
MnT and will shortly increase by another 5-10 MnT in future due to the government’s thrust on
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infrastructure building and affordable housing,” said an official at JSW Neosteel. “The BIS being the
certifying and enforcing authority, must play a significant role in setting up more testing facilities at
various locations, particularly in the vicinity of industrial clusters like Mandi Gobindgarh, Ludhiana,
Raipur, Ahmedabad, Ghaziabad, Bhavnagar, Jaipur, Durgapur and Coimbatore. More and more units
must be persuaded to get BIS licenses for production of TMT bars. This applies to steel exporters to
India also.”
Why TMT?
Compared to steel bars of yesteryears, TMT bars are manufactured using the latest Tempcore
technology to ensure durability. The process was developed in the 1970s for making high-strength,
weldable rebars from mild steel without adding costly alloying elements. What are their advantages?
TMT bars:
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