The downtrend in the local Indian rebar market has gathered pace, with prices seeking lower levels as mills and trade channels have pushed discounted sales aggressively to liquidate stocks ahead of the expected slowdown in construction demand during the monsoon rainy season starting in June, SteelOrbis learned from trade and industry circles on Tuesday, May 30.
Indian rebar trade prices are down INR 600/mt ($7/mt) to INR 52,900/mt ($640/mt) ex-Mumbai and have lost INR 500/mt ($6/mt) to INR 51,500/mt ($623/mt) ex-Chennai in the south.
Rebar prices have lost INR 700/mt ($8/mt) to INR 47,000/mt ($569/mt) ex-Raipur and are down INR 1,000/mt ($12/mt) to INR 46,600/mt ($564/mt) ex-Durgapur in the east.
“The market is losing confidence everyday as most assessments show a fundamental demand recession, particularly in retail sales to sectors like real estate development. Inflationary pressures and tight money supplies from lending institutions are strong headwinds to major consuming industries,” a Kolkata-based distributor said.
“The outlook is also pessimistic as the usual lean season for construction is approaching with the monsoon forecast to arrive across the country from the second week of June. Producers and trade channels are aggressively liquidating stocks at discounts,” he said.
$1 = INR 82.60