Local Indian rebar prices have staged a smart recovery breaking a prolonged downtrend amid a sharp rise in trading activity even after mills hiked prices, marking a beginning of inventory drawdown and improved sentiments with reports of the monsoon season starting to retreat across the country, SteelOrbis learned from trade and industry circles on Tuesday, September 24.
Indian rebar trade prices have gained INR 400/mt ($5/mt) to INR 45,700/mt ($547/mt) ex-Mumbai and are up INR 200/mt ($3/mt) to INR 46,200/mt ($553/mt) ex-Chennai in the south.
Rebar trade prices are up INR 2,200/mt ($26/mt) to INR 42,900/mt ($513/mt) ex-Raipur and have gained INR 1,700/mt ($20/mt) to INR 41,500/mt ($496/mt) ex-Durgapur in the east.
According to the sources, while secondary mills have increased ex-mill rebar prices by a range of INR 200-500/mt ($2-6/mt), large integrated mills have hiked prices by around INR 1,000/mt ($12/mt), but significantly higher prices have been largely ignored by the market.
“The rise in trading volume significantly eased sustained inventory pressures on producers, with sellers receiving good bookings. There is an overall impression that prices will move higher based on reports that the monsoon season is receding across the country as per the Indian Meteorological Department (IMD) and on expectations of a revival of construction and large project activities,” a Kolkata-based distributor said.
“It is to be noted that the largest gains were recorded in regional markets rather than in major trading hubs, indicating that the new upcycle will be driven by government spending on rural and semi-urban infrastructure projects. But our personal assessment is that the uptrend needs to consolidate for another few weeks before any confident prediction of a sustainable turnaround of the market,” he said
$1 = INR 83.60
