The downward trend in local Indian rebar trade prices has gained pace over the past week as induction furnaces, large and medium, lowered prices to support the market, but trade activity continued to remain lackluster, SteelOrbis learned from trade and industry circles on Tuesday, May 17.
Indian rebar trade prices are down INR 2,800/mt ($36/mt) to INR 60,000/mt ($774/mt) ex-Mumbai and down INR 1,000/mt ($13/mt) to INR 56,800/mt ($733/mt) ex-Raipur in the central regional market.
Trade prices lost INR 500/mt ($7/mt) to INR 62,300/mt ($803/mt) ex-Chennai in the south and are down INR 3,000/mt ($39/m) to INR 57,000/mt ($735/mt) ex-Durgapur in the east.
“The fall in sponge iron and billet prices provided secondary mills the opportunity to pass on its benefits through lower rebar prices. But the reduction is not perceived by the market to be enough to induce fresh bookings by market intermediaries,” a Kolkata-based distributor said.
“Inflation at 7.8 percent is the highest since 2014. With the common man reeling from retail inflation in food, fuel and fast-moving consumer goods, demand for capital goods and investments in housing is expected to see a sharp fall. Builders are fearing that untamed inflation will lead to a surge in inventories of completed housing. New project launches are turning risky and the demand depression for construction grade steel is expected to become more acute,” he said.
“While costs are soaring and up 50 percent since the start of this year, rebar prices are down 15 percent over the past two months and are expected to see a much lower bottom from current levels. We are constantly monitoring input costs and, if costs do not come down over the next one month, secondary mills will be forced to bring down plant utilization levels to 30-40 percent from 50-60 percent at percent,” an eastern region-based induction furnace operator said.
$1 = INR77.40
