The local Indian rebar market have entered a correction phase with prices retreating amid a combination of extended monsoon rains in some regions, a prolonged uptrend, rising inventory in trade channels, and a slowdown in retail sales, SteelOrbis learned from trade and industry circles on Tuesday, October 10.
Indian trade rebar prices are down INR 400/mt ($5/mt) to INR 51,700/mt ($621/mt) ex-Mumbai and have lost INR 800/mt ($10/mt) to INR 51,000/mt ($612/mt) ex-Chennai in the south.
Rebar trade prices, however, have increased by INR 200/mt ($2/mt) to INR 46,800/mt ($562/mt) ex-Raipur, reported to be due to low local supplies from mills, but are down INR 400/mt (5/mt) to INR 46,500/mt ($558/mt) ex-Durgapur in the east.
“A correction was expected after the prolonged bullish market conditions over the past several weeks. Trade prices rose too fast too soon. Trade channels restocked aggressively with enthusiasm and now find high inventories as retail sales have slowed down owing to late monsoon rains in eastern parts of the country,” a Kolkata-based distributor said.
“But we still maintain a positive outlook. The current phase of adjustment will run its course and positive demand growth will offer new support,” he said.
At the same time, two officials, one at a secondary mill and another at an integrated mill, both averred that, despite a correction in the market, producers will go ahead in increasing base prices for construction grade products as the higher cost of production from the rise in energy costs will need to be passed on to consumers.
$1 = INR 83.30