Indian domestic rebar (TMT) prices have continued to seek lower levels during the past week on sustained seasonal demand depression but regional disparities were seen to get accentuated both across regions and price disparities widening between medium and large producers, traders said on Tuesday, August 13.
According to traders, prices in northern regional markets around Delhi were down INR 200/mt at INR 33,100/mt ($465/mt) ex-stockyards while it lost around INR 400/mt coming to INR 32,700/mt ($459/mt) ex-stockyard in eastern regional markets around Kolkata. With these price losses, local rebar prices were currently ruling at a 19-month low across markets, the traders said.
Small and medium scale rebar producers which barring those located in the north were all reported to be offering discounts ranging between 10-15% further skewing regional price disparities, the traders said.
“The price disparities are largely result of each producer attempting to cope with overall fall in demand from slower construction activity during the current rainy season. In fact, the demand fall has been sharper than usual with several regions like north-east, south and west facing floods and a near halt in all construction activity,” a Kolkata-based trader said.
“While large rebar producers are comparatively in a better position to maintain prices as they have the support from large government supply contracts, small and medium scale producers who are more reliant on B2C sales are forced to offer discounts to keep pushing volumes in the market and check inventory build up,” the trader added.
Market sources said that Indian rebar exports will come to a near standstill as neighboring markets like Nepal and Bangladesh were facing sharp fall in prices and buyers in these countries did not respond to any offers submitted by Indian merchant exporters during the past week.
$1 = INR 71.21