The local Indian rebar market has shifted from a recovery phase to uncertainty over the past week, with prices showing a mixed trend and market participants across bulk and retail segments refraining from making commitments, SteelOrbis learned from trade and industry circles on Tuesday, December 19.
Sources said that rebar trade prices gained a marginal INR 200/mt ($2.40/mt) to INR 49,300/mt ($592/mt) ex-Mumbai, but have remained unchanged at INR 49,000/mt ($588/mt) ex-Chennai in the south.
In contrast, rebar trade prices have lost INR 400/mt ($5/mt) to INR 43,800/mt ($526/mt) ex-Raipur and are down INR 400/mt ($5/mt) to INR 43,800/mt ($526/mt) ex-Durgapur in the east.
“There is no confidence in the market. Forecasting demand in the current market situation is hazardous. Hence, trade channels are wary of making fresh bookings and are on the sidelines. The recovery seen earlier in the month was clearly a false start. The fundamental weakness of oversupply and soft demand are back,” a Kolkata-based distributor said.
According to an official with a leading eastern India-based secondary mill, until now the drop in volumes and prices had been sharper in retail trade channels, but this is now being seen in large tender-based sales. He said that the number of bids and volumes in tenders has been significantly lower in December, which could be partly attributed to year-end considerations and restricted fund allocations for government-aided projects as the fiscal year comes to a close.
$1 = INR 83.30