The local Indian rebar market has showed a slight revival in activity over the past week with secondary producers not only increasing prices, but also seeing a still modest uptick in fresh bookings on expectations of key projects restarting with the gradual easing of lockdown restrictions in western and northern regions, SteelOrbis learned from trade and industry circles on Tuesday, June 8.
Indian secondary rebar producers in an attempt to pass on higher merchant sale prices of billets have increased rebar prices by around INR 1,000/mt ($14/mt) to INR 51,000-52,000/mt ($701-714/mt) ex-works and have improved trading volumes, edging up the tradable price to around INR 53,000/mt ($728/mt) ex-Mumbai.
However, integrated steel mills have maintained their higher prices at levels of INR 55,000-56,500/mt ($755-776/mt) ex-works and the tradable price has been heard at around INR 58,000/mt ($797/mt) ex-Mumbai, the sources said.
According to some industry reports from real estate developers, it is estimated that about 422,000 homes across housing development projects were delayed by the second wave of the pandemic, but developers reckon that the pace of construction work will increase as lockdown restrictions in the west and north are relaxed and fresh bookings of raw materials are starting to show up, providing some support for rebar prices.
“Higher prices of iron ore and billets have left us with no option but to increase rebar prices amid weak market conditions. Secondary producers are banking on construction work to restart over the next one week and on fresh bookings to emerge, so that plant utilization levels improve and also cash flows,” an official at Shyam Steel said.
“We are keeping a close watch on billet prices of integrated steel mills. Any upward movement will force us to go in for a second rebar price increase in June, as our current realizations do not offer any room to absorb higher input costs,’ he added.
$1 = INR 72.80
