The Indian rebar market for secondary mills suffered setbacks ranging from modest to heavy, widening price disparities across regional markets, while integrated mills resorting to deep discounts to keep pushing volumes in the market, SteelOrbis learned from trade and industry circles on Tuesday, November 16.
Buyers, retail as well and engineering, procurement, construction (EPC) companies, were heard to be deferring bookings waiting for prices to find a new bottom as expectations of an upside movement had largely been discounted by market participants.
The downward movement of rebar prices of secondary mills was noticed in a wide range of INR 400-1,500/mt ($5-20/mt) depending on sharp variations in trade environment in different geographies.
According to trade circles, rebar prices lost INR 1,000/mt ($13/mt) to INR 50,000-51,000/mt ($672-685/mt) ex-Mumbai. In regional market of Raipur in central region, secondary rebar price was down INR 1,500/mt ($20/mt) to INR 48,300/mt ($650/mt) ex-warehouse. In southern regional market, the loss was comparatively modest at INR 400/mt ($5/mt) to INR 49,000/mt ($659/mt).
Local integrated steel mills reportedly maintained base price at very high levels of INR 58,000-60,000/mt ($780-806/mt) ex-works, but market participants reported that all mills were accepting bulk retail bookings at deep discounts of at least INR 3,000-4,000/mt ($40-54/mt) and not linked to volumes booked, sources said.
“Demand revival from construction sector, post-monsoon, post festival has been far below expectations than previous years. Rising construction costs from inflationary pressures on steel, cement, energy, transport are providing strong headwind to construction activity growth and hence derivative negative impact on the long product market segment,” a source in government run steel producer, Rashtriya Ispat Nigam Limited (RINL) said.
“Buyers are deferring fresh bookings waiting for the correction to gain momentum. But from the producers point of view, overall high inflation will keep prices up,” the sources said.
$1= INR 74.40
