The local Indian rebar market has slumped into a deeper correction with induction furnace operators cutting prices under inventory pressures, while trade channels have reduced bookings at the same time amid mounting pessimism over the bearish outlook for real estate development and small construction projects, SteelOrbis learned from trade and industry circles on Tuesday, February.
Indian rebar trade prices are down INR 2,300/mt ($28/mt) to INR 56,100/mt ($678/mt) ex-Mumbai and have lost INR 200/mt ($2/mt) to INR 53,000/mt ($641/mt) ex-Chennai in the south.
Rear prices have slumped INR 1,900/mt ($23/mt) to INR 49,500/mt ($599/mt) ex-Raipur in the central regional market and are down INR 1,400/mt ($17/mt) to INR 48,800/mt ($590/mt) ex-Durgapur in the east.
“The disappointment of the national budget lacking any specific measures for key user segments like real estate and small urban construction projects has been compounded by the rise in interest rates pushing up housing loan costs, overall ongoing inflationary pressures, and rising input costs of secondary mills, which have forced the rebar market to slip into deep bearish conditions,” a Kolkata-based distributor said.
“The government has increased capital outlay on infrastructure but its positive effect will be limited to large integrated mills relying mostly on large tender-based supply contracts. Secondary mills dependant on retail sales have nothing much to look forward from government initiatives,” he said.
According to an official with an eastern region-based secondary mill, the high volatility in the market is a negative for producers, as most will have to delay planned price increases to compensate for rising energy costs, and discounted sales to reduce inventories will impact margin earnings during the important last quarter of the current fiscal year.
$1 = INR 82.70
