Indian local rebar prices lost ground over the past week as downside correction set in the market with buyers reducing bookings with induction furnace operators, SteelOrbis learned from trade and industry circles on Tuesday, August 23.
Indian rebar trade price lost INR 600/mt ($8/mt) at INR 55,500/mt ($695/mt) ex-Mumbai and down INR 500/mt ($6/mt) at INR 56,500/mt ($707/mt) ex-Chennai in the southern regional market.
Rebar price was down INR 1,000/mt ($12/mt) at INR 56,000/mt ($701/mt) ex-Durgapur in the east and down INR 1,500/mt ($19/mt) at INR 52,600/mt ($658/mt) ex-Raipur in central region.
“A slight correction in the market has surfaced, triggered by completion of restocking by construction companies in the previous week and perhaps prices had increased a little too fast. But overall the outlook remains positive and downside risks to price will be limited by buyers returning soon as post-monsoon rise in building and construction is closing in,” a Kolkata based long product distributor said.
“The slight fall in trade price is also not a major concern for furnace operators as input prices of sponge iron, billets are also showing signs of softening. Hence on net basis margins remain positive for rebar producers and positive for a demand boost,” he said.
$1 = INR 79.90