The local Indian rebar market has showed a mixed trend with prices slipping in some regional markets, responding to higher supplies from induction furnace operators, but the outlook has remained positive, with minimal risks of a major correction, SteelOrbis learned from trade and industry circles on Tuesday, September 12.
Indian rebar trade prices are up INR 600/mt ($7/mt) to INR 52,200/mt ($629/mt) ex-Mumbai but have lost INR 300/mt ($4/mt) to INR 52,000/mt ($627/mt) ex-Chennai in the south.
Similarly, trade rebar prices are down INR 1,100/mt ($13/mt) to INR 47,500/mt ($572/mt) ex-Raipur in the central region and have lost INR 1,000/mt ($12/mt) to INR 47,000/mt ($566/mt) ex-Durgapur in the east.
The sources said that the downtrend in regional markets could be attributed to two factors. Firstly, there have been improved supplies from secondary mills, easing the earlier tight market conditions. Secondly, some secondary mills have been attempting to push higher volumes into the market passing on the benefits of the marginal fall in prices of sponge iron and billet, which on average are down INR 500/mt ($6/mt) over the past week.
“The softening of some markets does not impact the overall buoyant conditions. There is a minimal risk of the price fall snowballing into a major correction because demand going forward into October and November will continue to remain robust as construction activities continue to rise,” a Kolkata-based distributor said.
“In fact, the reduction in price will lead to faster movement of material to the market, a reduction in inventories at mills and trade channels and further new restocking… all a virtuous cycle,” he said.
$1 = INR 83.00
