Indian integrated steel mills have commenced increasing rebar prices during the past week even as reports from major construction companies indicate that operations at major infrastructure and construction projects have been halved in face of disruptions in supplies of men and material, SteelOrbis learned from trade and industry circles on Tuesday, May 4.
Integrated steel mills, at least two major ones, have increased rebar base prices by around INR 1,000-1,500/mt ($14-20/mt) to INR 53,000-54,500/mt ($717-737/mt) ex-works.
However, secondary rebar producers have maintained base prices at INR 49,000-50,000/mt ($663-677/mt) ex-works, although only small stray deals have been concluded, reflecting the overall nervousness prevailing in the market.
“Major construction and infrastructure projects are currently working at half the normal pace. There is acute shortage of men and disruptions in material supplies. Housing projects in the regions worst-affected by the virus will definitely be delayed,” a leading northern India-based engineering procurement and construction company said in a report.
“There is no point in stocking up key materials like cement and steel at a time when no project-implementing agency is sure of completion dates,” the report added.
According to a Mumbai-based steel sector analyst from a financial advisory firm, large integrated steel mills are better able to take the risk of increasing prices in overall depressed market conditions as they are able to commit supplies to government projects against tendering, which is not as badly affected by the pandemic compared to the retail housing and real estate development sectors.
$1 = INR 73.90