The negative trend has gained momentum in the local Indian rebar market amid a combination of falling trade ahead of the festival holidays, trade channels quoting lower prices to liquidate inventories and raise cash, and secondary mills pushing larger volumes into the market amid sluggish demand conditions, with users sticking to need-based bookings, SteelOrbis learned from trade and industry circles on Tuesday, November 7.
Indian trade rebar prices are down INR 600/mt ($7/mt) to INR 49,300/mt ($593/mt) ex-Mumbai and are down INR 1,000/mt ($12/mt) to INR 49,500/mt ($595/mt) ex-Chennai in the south.
Rebar prices have lost INR 300/mt ($3/mt) to INR 45,200/mt ($543/mt) ex-Raipur and are down INR 1,200/mt ($14/mt) to INR 44,000/mt ($529/mt) ex-Durgapur in the east.
“So far there is a consensus in the market that the recent downturn is because of the fall in business and trade ahead of holidays. Next week, therefore, will be crucial in determining short-terms trend. If there is no rebound once business picks up, there is a serious risk of the market moving from a correction to a bear phase,” a Kolkata-based distributor said.
“Concerns are deepening because there is a slowdown in bookings seen in the retail segment as small and medium-scale realtors are very cautious. Major markets in the north are seeing the sharpest downward movement,” he said.
According to an official at an eastern India-based secondary mill, “We will not be able to continue to quote lower prices in the coming weeks because input costs are rising, particularly energy prices. We will have to push up prices even amid weak market conditions to protect our margins.”
$1 = INR 83.20
