Local Indian rebar prices have continued to consolidate at higher levels over the past week following price hikes announced by induction furnace operators supported by sustained bookings from large buyers, while retail trade has also remained moderate, SteelOrbis learned from trade and industry circles on Tuesday, March 10.
Sources said that trade-level rebar prices have gained INR 600/mt ($6/mt) to INR 50,800/mt ($550/mt) ex-Mumbai and are up INR 800/mt ($9/mt) to INR 49,800/mt ($539/mt) ex-Chennai in the south.
Rebar trade prices have moved up INR 900/mt ($10/mt) to INR 46,500/mt ($504/mt) ex-Raipur and are also up INR 900/mt ($10/mt) to INR 47,000/mt ($509/mt) ex-Durgapur in the east.
The sources said that large central and western region-based induction furnace operators have hiked prices, citing input cost increases following local energy cost rises and shortages of natural gas as the impact on the war in the Middle East has started to impact energy supplies in domestic markets.
However, the higher prices have been absorbed by the market which was sufficiently supported by continued bookings by large buyers representing engineering, procurement, construction (EPC) companies, while retail trade was termed “moderate”, which was positive considering fiscal year-end considerations that usually impact sectors like real estate developers on the medium and small scales, the sources said.
“The rising energy costs have not yet impacted industrials as yet. But we assess that, as the geopolitical situation in the Middle East is prolonged and energy imports from the region are affected, the costs of production across the manufacturing sector will be impacted with commensurate risks of an overall demand contraction. Hence, there is a need to make a more rational assessment of the short-term outlook of the market and temper the current bullish mood and prices,” a Kolkata-based distributor said.
$1 = INR 92.14
