Local Indian rebar traded prices have sought lower levels amid weak sales volumes as concerns over increasing regional lockdowns have become aggravated and fears of construction activity being hit have increased, SteelOrbis has learned from trade and industry circles on Tuesday, March 30.
Sources said that a major concern is the imposition of a night curfew and a complete lockdown in regions across the western state of Maharashtra as it is a major manufacturing hub in the country accounting for about 14 percent of the country’s GDP.
The clampdown in Maharashtra is likely to impact the entire manufacturing supply chains across neighboring states like Gujarat and Karnataka and traders have been forced to either halt or sharply reduce fresh bookings.
While the impact of the new measures to control the second wave of the pandemic on the actual construction industry is yet to be assessed, sentiments have turned negative and low trading interest has put renewed pressures on prices.
Market sources said that tradable rebar prices have been assessed at around INR 49,000-50,000/mt ($676-690/mt) ex-Mumbai, against INR 51,750/mt ($714/mt) on average a week ago, even as primary mills have kept base prices unchanged at INR 48,500/mt ($669/mt) ex-works.
Secondary mills’ tradable rebar prices have been reported at around INR 48,000/mt ($662/mt), on a par with ex-work base prices of producers, even though at least two traders said that discounts of around INR 500/mt ($7/mt) are available on trades concluded around Mumbai and Raipur in central India.
$1 = INR 72.50