Local Indian rebar trade prices have recorded gains across regional markets, reacting to price increases by induction and blast furnace operators, supported by sustained booking levels from retail and projects, SteelOrbis learned from trade and industry circles on Tuesday, July 12.
Electricity utilities in the east and west effected increases in energy rates, prompting producers to hike prices immediately to pass on higher input costs to consumers. The producers said that strong wholesale and retail bookings in the market enabled prices to consolidate at higher levels.
The sources said that Indian rebar trade prices are up INR 1,300/mt ($16/mt) to INR 55,800/mt ($703/mt) ex-Mumbai and up INR 2,000/mt ($25/mt) to INR 59,500/mt ($749/mt) ex-Chennai in the south.
Rebar trade prices have gained INR 3,000/mt ($38/mt) to INR 56,000/m ($705/mt) ex-Durgapur in the east and are up INR 2,300/mt ($29/mt) to INR 55,300/mt ($696/mt) ex-Raipur in the central region.
“Even after factoring in the rise in the cost of energy and prices of intermediates like billets and sponge iron, rebar producers have been able to successfully improve margins from higher prices and steadily improving demand,” a Kolkata-based distributor said.
“If demand is getting stronger during the dull months of the current monsoon season, the outlook is getting very positive for the next quarter when construction activities gather pace. Retailers are also restocking at a faster pace as medium and small housing construction is gathering pace. Large real estate developers are also focussing on completing ongoing projects and are booking raw materials at higher levels, leading to overall better market conditions,” he said.
$1 = INR 79.40
