The local Indian rebar market has showed mixed trends over the past week with integrated mills increasing prices, but traded prices of secondary mills have inched lower in select regional markets, indicating buyers’ resistance to the recent sustained uptrend and a more realistic assessment of the demand uptick from higher government outlays on infrastructure, SteelOrbis learned from trade and industry circles on Tuesday, February 8.
Over the past week, large mills led by Tata Steel, JSPL, RINL and Steel Authority of India Limited (SAIL) have increased rebar base prices by the range of INR 1,500-2,000/mt ($20-27/mt) to INR 60,700-62,000/mt ($813-830/mt) ex-works.
However, in contrast traded prices of small and mid-sized secondary mills have inched lower by INR 400-600/mt ($5-8/mt), with retail buyers becoming cautious, expecting the recent gains in prices to have run their course and with possibilities of a correction setting into the market.
Sources said that the rebar price is down INR 400/mt ($5/mt) in the central regional market of Raipur to INR 49,300/mt ($660/mt) ex-warehouse. In the eastern regional market of Rourkela, the rebar price has softened by INR 600/mt ($8/mt) to INR 51,400/mt ($688/mt) ex-warehouse.
Rebar prices have remained unchanged in the Mumbai market at INR 53,100/mt ($711/mt) ex-warehouse, sources said.
“The demand surge expected from higher government spending in infrastructure will be very granular. Large mills will be able to step up high-volume project supplies and hence we are seeing base price increases for long products. But initial bullish sentiments seen earlier are starting to wane in retail sales of smaller secondary mills. Rural construction overseen by state governments and real estate development in semi-urban areas is unlikely to benefit from government spending and hence more cautiousness is emerging among buyers,” a Mumbai-based steel distributor said.
$1 = INR 74.70
