After recent prolonged upsurge, local Indian rebar trade prices started showing a mixed trend with prices declining in certain regional markets and taken to be indications of a more definitive correction round the corner as prices may have risen too fast without commensurate demand uptick, SteelOrbis learned from trade and industry circles on Tuesday.
Indian rebar trade price was up by INR 500/mt ($6/mt) to INR 51,300/mt ($615/mt) ex-Mumbai and by INR 500/mt ($6/mt) to INR 50,500/mt ($606/mt) ex-Chennai in the south.
But more significantly, prices dropped by INR 1,200/mt ($14/mt) to INR 47,000/mt ($564/mt) ex-Raipur and by INR 800/mt ($10/mt) to INR 47,700/mt ($572/mt) ex-Durgapur in the east.
According to the sources, the disparities across markets was indicative that a correction was setting in market by market.
“Long products prices have been rising too fast for too long. But the uptrend was entirely price driven and not demand driven. Large bookings by engineering construction companies (EPCs) provided some support for some time even though retail trade and bookings from real estate developers and small urban construction projects continued to remain sluggish. This underlying fundamental weakness is coming to the surface,” a Kolkata based distributor said.
“With regional markets showing a declining trend, buyers will lose confidence in making commitments at current prices. Every market participant will keep a watch how the correction spreads from regional markets to major hubs,” he said.
$1= INR 83.40
