The correction in the local Indian rebar market has deepened and trade prices have suffered a setback amid weakening demand in retail sales, reduced bookings attracted by mills as end-users have shifted to only need-based restocking, and with the festival holidays starting later this week, SteelOrbis learned from trade and industry circles on Tuesday, October 17.
Sources said that rebar trade prices are down INR 700/mt ($8/mt) to INR 51,000/mt ($613/mt) ex-Mumbai and have lost INR 200/mt ($2mt) to INR 50,800/mt ($611/mt) ex-Chennai in the south.
Rebar trade prices have lost INR 600/mt ($7/mt) to INR 46,200/mt ($555/mt) ex-Raipur and are down INR 300/mt ($3/mt) to INR 46,200/mt ($555/mt) ex-Durgapur in the east.
However, despite the slowdown in trade volumes and the softening of prices, several market participants have maintained a positive outlook, expecting a rebound, claiming that overall demand remains strong and that the current correction is more in the nature of a market adjustment after the prolonged uptrend seen in earlier months.
“At the trade level, prices were being quoted lower in order to liquidate stocks and improve cash flows ahead of the long festival holidays starting later this week. This is temporary and not reflective of the strong fundamentals of the market,” a Kolkata-based distributor said.
“Demand for construction grade steel will continue to find support from large government spending. Retail sales too will improve once business resumes after the festival holidays. Sole proprietorships, partnerships and private companies generally do not extend financial commitments ahead of the festivals, leading to the current lackluster trade environment,” he said.
$1 = INR 83.20