Local Indian rebar trade prices have remained under sustained pressures from the fall in trading and booking volumes and the rise in inventory levels, with induction furnace operators and integrated mills reducing long product prices, SteelOrbis learned from trade and industry circles on Tuesday, November 29.
Indian rebar prices have slumped INR 1,200/mt ($15/mt) to INR 52,000/mt ($636/mt) ex-Mumbai and are down INR 200/mt ($2/mt) to INR 51,800/mt ($634/mt) ex-Chennai in the south.
Rebar prices have declined by INR 3,200/mt ($39/mt) to INR 45,400/mt ($556/mt) ex-Raipur in the central region and are down INR 200/mt ($2/mt) to INR 46,200/mt ($565/mt) ex-Durgapur in the east.
“There is a high level of volatility in the market and losses are showing wide regional variations. This is largely owing to market participants being unsure of the market direction and they are nervous over issues like inflationary pressures, rising interest rates and its impact on key consuming industries like housing and construction,” a Kolkata-based distributor said.
“Trade channels have sharply reduced fresh bookings to avoid price volatility, while retail buyers from small-scale real estate developers are lowering raw material restocking, faced with rising costs of borrowing from lending institutions, leading to the aggravated bearish outlook,” he said.
At the same time, an official at a government steel producer said that large integrated mills are faced with a lower number of bids received against tender-based offers and most have been lowering reserve prices of such tender offers to bulk buyers both in the government and private construction sectors.
$1 = INR 81.70