The local Indian rebar market has showed slight signs of overall positive movement both in terms of prices and trading volumes triggered by the optimism over the revival in construction activities, the rise in fresh bookings, and anticipation of price increases by both by integrated steel mills and secondary producers, SteelOrbis learned from trade and industry circles on Tuesday, June 15.
Indian integrated steel mills maintained base prices at INR 55,000-56,500/mt ($750-771/mt) ex-works, but the tradable price was heard INR 500/mt ($7/mt) higher than a week ago at INR 58,500/mt ($798/mt) ex-Mumbai.
At least two traders pointed out that integrated steel mills refrained from increasing rebar base price early this week, at the time when producers increased flat product prices, in view of the weak market for long products. But the market is expecting the situation to change and primary producers will go in for a long product price increase responding to the rise in iron ore prices and green-shoots of a revival in construction activities.
The market, however, expected the base price increase to be modest at around INR 1,000/mt ($14/mt) maximum, lower as compared to flat products, with long product markets still in a comparatively weak zone.
According to the sources, rebar prices of secondary producers have remained in the range of INR 51,000-52,000/mt ($696-709/mt) ex-works. But tradable prices were heard at INR 54,500/mt ($744/mt) ex-Mumbai, compared to the traded price of INR 53,000/mt ($723/mt) a week ago, supported by real estate developers returning to the market with cautious bookings as more projects resume operations, particularly in the northern India region around Delhi where economic restrictions are being eased.
However, the Builders’ Association of India (BAI) said that high prices of steel and cement would temper down the pace of resumption of real estate projects. The association claimed that higher price of raw materials would not only increase the cost of housing, but, considering the cash flow problems of developers, the latter would be extremely cautious in restocking raw materials even if low stocks risk delays in project completion.
$1 = INR 73.30