The local Indian rebar market has continued to show diverse trends over the past week, with prices just about holding ground in major trading hubs while suffering setbacks in regional markets amid a strong negative bias stemming from the extended monsoon rains and a few secondary mills dropping prices to liquidate inventories, SteelOrbis learned from trade and industry circles on Tuesday, September 16.
Sources said that in the major trading center of Mumbai rebar prices have remained stable at INR 44,300/mt ($503/mt), but have slumped INR 1,000/mt ($11/mt) to INR 44,500/mt ($505/mt) ex-Chennai in the south.
Rebar trade prices have lost INR 400/mt ($5/mt) to INR 39,600/mt ($450/mt) ex-Raipur in the central region and are down INR 650/mt ($7/mt) to INR 38,900/mt ($442/mt) ex-Durgapur in the east.
The sources said that some induction furnace operators have been dropping prices to respond to the slowdown in stock movements as retail end-buyers have been deferring purchases since the monsoon season was been prolonged and widespread rain has made the demand revival hazy.
Large buyers among engineering procurement construction (EPC) companies have also been absent from the market for the past several weeks as implementation of large projects has been delayed and the deferred restocking of raw materials has resulted in inventory pressures developing at large integrated mills, the sources added.
“The much-expected demand revival has been belied. The usual onset of the so-called busy season is still some distance away. This is deepening the pessimism among all segments of market participants. A few major trading hubs are seeing some price stability only because there are more players in these regions compared to markets in the hinterland,” a Kolkata-based trader said.
“Sellers are trimming prices to conclude small-volume deals. Buyers are unwilling to commit fresh bookings, to avoid being saddled with stocks. It is a stalemate with strong downside risks going forward,’ he added.
$1 = INR 88.04
