Local Indian rebar prices showed divergent trends with price increase slowing down in major trading hubs but losing ground in regional markets with a section of market apprehensive of a correction setting in after sharp surges seen in past consecutive weeks, SteelOrbis learned from trade and industry circles in Tuesday, May 14.
Sources said that rebar trade price remained stable at INR 53,300/mt ($638/mt) ex-Mumbai but gained INR 700/mt ($8/mt) at INR 53,000/mt ($635/mt) ex-Chennai in the south.
In contrast reflecting a downtrend, rebar trade price slumped by INR 1,700/mt ($20/mt) at INR 47,000/mt ($563/mt) ex-Raipur and down INR 1,400/mt ($17/mt) at INR 47,400/mt ($568/mt) ex-Durgapur in the east.
“Both integrated mills and induction furnace operators have been increasing prices too aggressively over the past several weeks and the market, particularly regional ones are showing resistance. A more broad-based correction is now very imminent,” a Kolkata based distributor said.
“The market is showing clear indications that prices increased based on supply side dynamics, ignoring that demand side is not sustainable. There is a complete lack of buying interest at trade level and buyers are unlikely to return in a hurry without a drastic adjustment to the price line,” he said.
$1= INR 83.50
