The local Indian rebar market has showed a mixed trend amid negligible trade at the retail level and any major loss in price was avoided as most secondary mills completed year-end stock liquidation, but the short-term outlook for the new fiscal remains negative, SteelOrbis learned from trade and industry circles on Tuesday, March 28.
Sources said that rebar prices have remained stable to INR 55,500/mt ($674/mt) ex-Mumbai but have gained INR 800/mt ($10/mt) to INR 54,500/mt ($661/mt) ex-Chennai in the south.
Rebar prices are up a marginal INR 200/mt ($2/mt) to INR 50,200/mt ($609/mt) ex-Raipur in the central region, but are down INR 200/mt ($2/mt) to INR 50,000/mt ($606/mt) ex-Durgapur in the east.
“Retail trade is almost halted with user sectors like real estate developers busy with closing books of accounts and conserving cash on the books. Trade channels too have liquidated stocks and are not committing fresh bookings in the absence of any market trend,” a Kolkata-based distributor said.
“Market intermediaries are awaiting pricing signals from secondary mills. Having liquidated inventories, it is to be watched if producers hike prices or maintain current levels, on which will depend short-term trading trends,” he said.
At least two officials at secondary mills said that they are “for now maintaining a neutral stance” on pricing. They said that project off-take was “moderate” but not sufficient to support the market and that stock movement at the retail level driven by construction and real estate development will need to gather pace for the market to absorb any price increase.
$1 = INR 82.40
