Indian domestic thermo-mechanically treated (TMT) rebar prices have remained unchanged during the past week, continuing to languish at 24-month lows in the absence of any revival of key drivers even as the market waits for recent government announcements to trickle down, traders said on Tuesday, August 27.
The traders said that no export trades have been reported in the market and, with rebar prices slumping in Bangladesh, even small shipments to neighboring markets have dried up over the week. Competition in Southeast Asia has become tighter as Chinese and Turkish exporters were ready to provide discounts. Prices from large Indian mills have stayed at last week’s levels of $460-467/mt FOB on actual weight basis, which is equivalent to about $475/mt CFR Singapore.
Market sources said that local rebar prices of small and medium-scale manufacturers have remained unchanged at around INR 32,700/mt ($454/mt) ex-stockyard, while large producers’ prices are also unchanged at INR 33,000/mt ($458/mt) ex-stockyard.
“Any prospect of improved market conditions - demand and prices - can be ruled out at least until November until after the current monsoon rains abate and the festival season is over,” an eastern region-based rebar dealer said.
“The government has ruled out any direct fiscal incentives to the construction industry particularly the housing sector which is seeing a large number of builders in financial distress. The government’s finance ministry has announced that measures would be taken to ensure higher credit flow to the construction sector from banks and private financial lending institutions. But flow of credit from banks to industry usually comes with a lag period and increased funding too can only be expected after November and markets conditions will remain at current lows until then and market intermediaries will continue to keep fresh bookings at a bare minimum,” the dealer added.