Local Indian rebar traded prices have showed a mixed trend over the past week with a sharp downturn in some regions and increases in others attributed to differing impacts of the end of the fiscal year and uncertainty over real estate developers’ threats to halt ongoing projects. But market participants have discounted any deep negative correction as mills are considering a hike in long product base prices in April, SteelOrbis learned from trade and industry circles on Tuesday, March 29.
Indian trade prices are down INR 1,200/mt ($16/mt) to INR 68,300/mt ($894/mt) ex-Mumbai and down INR 2,300/mt ($30/mt) to INR 62,000/mt ($812/mt) ex-Raipur in the central regional market. However, rebar trade prices have recorded a gain of INR 800/mt ($10/mt) to INR 66,500/mt ($870/mt) ex-Chennai in the south.
“The market is trying to reconcile several uncertainties and variables. Among the negatives are the year-end considerations, impacting various user segments differently, and real estate developers may or may not carry out threats to halt projects, citing surging steel prices,” a Mumbai-based distributor said.
“On the other hand, it is now very clear that integrated and secondary mills will certainly increase long product prices in early April. So, any negative correction can be ruled out,” he said.
Two in trade circles and an official with a government steel mill said that producers were looking at a minimum base price increase of INR 2,000/mt ($26/mt) for long products in the first round of price adjustments very early in April.
$1 = INR 76.40
