Local Indian rebar market has showed a mixed trend with prices facing a minor correction in a few regions, but overall conditions have remained strong amid continued bookings both from retail trade and large projects and great expectations of a boost in government spending in the forthcoming national budget next month, SteelOrbis learned from trade and industry circles on Tuesday, January 24.
Indian rebar trade prices have suffered a small setback of INR 200/mt ($2/mt) to INR 57,300/mt ($704/mt) ex-Mumbai, but have gained INR 500/mt ($6/mt) to INR 54,500/mt ($670/mt) ex-Chennai in the south.
Rebar prices have lost INR 800/mt ($10/mt) to INR 51,900/mt ($638/mt) ex-Raipur in the central region and are stable at INR 53,500/mt ($657/mt) ex-Durgapur in the east.
“There is some degree of volatility in the market. But this is normal as the rebar market was moving up too fast in the previous week. But the correction is region-specific as the outlook on demand growth is very positive,” a Kolkata-based distributor said.
According to a source at Shyam Steel Limited, eastern India’s largest rebar producer, secondary mills are planning to further push up rebar prices taking advantage of large-volume spot buying by the engineering procurement, construction (EPC) sector.
The source said that the forthcoming national budget is expected to focus higher outlays on green building development, the reduction of duties for real estate, and even the possible lowering of the Goods and Service Tax (GST) on residential units, all of which would be growth drivers for construction materials including rebar.
$1 = INR 81.40