Local Indian rebar trade prices have collapsed amid a combination of price reductions by induction furnace operators and excess supplies continuing to put incremental pressures on prices in weak demand conditions, SteelOrbis learned from trade and industry circles on Tuesday, May 24.
Indian rebar trade prices are down to INR 55,900/mt ($721/mt) ex- Mumbai, and down INR 4,100/mt ($53/mt) to INR 53,500/mt ($690/mt) ex-Raipur in the central regional market, down INR 3,300/mt ($43/m) a week ago.
Rebar trade prices are reported at INR 60,000/mt ($774/mt) ex-Chennai in the south, down INR 2,300/mt ($30/mt) over the past week and at INR 52,000/mt ($671/mt) ex-Durgapur in the east, down INR 5,000/mt ($65/mt).
“Secondary mills lowered prices to pass on the benefits of lower input costs and the changes in import duties on raw materials to support consumers. But we see trade prices falling much faster largely due to oversupply in weak demand conditions,” an official at eastern India’s largest rebar producer said.
“These are difficult times as lower prices are not leading to any demand revival, indicating deeper problems afflicting economic growth conditions. For example, with inflation surging to record levels, housing sales are expected to fall amid negative investor confidence, prompting real estate developers to either scrap or slow down new projects. Under these circumstances, the lower rebar price which is sustained by demand derived from housing is unlikely to revive,” he said.
“Trade channels are worried and concerned over how recent duty changes, lower rates for imported inputs, and high export taxes will change production-cost dynamics of mills. But it is clear that prices will continue to seek lower levels amid weak demand leading to a further fall in trade channel activity,” a Kolkata-based distributor said.
$1 = INR 77.50
