Sources said that rebar trade price lost INR 500/mt ($5/mt) at INR 47,900/mt ($498/mt) ex-Mumbai and slumped INR 1,000/mt ($10/mt) at INR 49,500/mt ($514/mt) ex-Chennai in the south.
Rebar trade price lost INR 1,000/mt ($10/mt) at INR 43,100/mt ($448/mt) ex-Raipur and down INR 900/mt ($9/mt) at INR 42,800/mt ($445/mt) ex-Durgapur in the east.
According to the sources, both retail and large buyers from engineering, construction, procurement (EPC) companies were sparse in the market. Furthermore, reports that large construction activities were being slowed down following the government’s advisory to cut down on fuel consumption depressed sentiments.
A section in trade circles said that average inventories with secondary mills now range between 20-25 days consumption equivalent, up from 15-20 days a week ago, although with regional variations.
Both producers and distributors were forced to push discounted sales to check cost of carrying higher inventories and at a time when buyers were avoiding bulk bookings uncertain about demand ahead, the sources said.
“There is no confidence among either buyers or producers. Costs push prices from inflationary pressures and declining demand puts the market firmly in stagflation. Margins from sales are nearing negative territory,” a Kolkata based distributor said.
