The sudden previous strong activity in the local Indian rebar market has been replaced by more sedate conditions amid mixed trends as market participants adjusted to low demand in the monsoon months ahead, SteelOrbis learned from trade and industry circles on Tuesday, June 7.
Local Indian rebar trade prices have showed a mixed trend of stability or losses across regional markets, with a strong negative bias. Rebar trade prices are down INR 2,000/mt ($26/mt) to INR 54,400/mt ($701/m) ex-Mumbai, while prices have remained at INR 54,500/mt ($702/mt) ex-Raipur in the central regional market.
Rebar prices have lost INR 3,000/mt ($39/mt) to INR 57,500/mt ($741/mt) ex-Chennai in the south, but have remained stable at INR 53,000/mt ($683/mt) ex-Durgapur in the east.
“Higher prices were on offer early in the week largely based on the rise in activity in the previous week. But higher levels have largely been rejected by buyers anticipating a fall in prices from the softening of sponge iron, pellet and iron ore prices, coupled with the usual low demand in the monsoon months,” a Kolkata-based distributor said.
“With construction activity slowing down, we can expect a soft price regime to prevail at least for the coming quarter. At least some induction furnace operators in the north and east are already planning monsoon cutbacks in capacity utilization levels,” he said.
$1 = INR 77.60
