New Delhi, Sept. 20 -- Domestic steel prices are expected to remain firm in September as post-monsoon construction activity gradually recovers, while maintenance-related supply constraints are likely to provide additional support to rebar prices, according to a research report by SBICAP Securities.

The brokerage expects rebar prices to outpace HRC (hot rolled coil) price increases in September, leading to a further narrowing of the HRC-BF (Blast Furnace) rebar spread as supply constraints persist and domestic demand improves gradually. It said the trajectory of domestic steel prices will primarily depend on the pace of post-monsoon demand recovery and the gap between steel exports and imports.

The outlook comes after a sharp recovery in...