The local Indian rebar market has showed slight signs of consolidation in the past week, with trade prices inching up and with induction furnace operators increasing prices taking their cue from the positive momentum seen in sponge iron and billet prices and expectations of higher government spending in the forthcoming national budget next month, SteelOrbis learned from trade and industry circles on Tuesday, January 28.
Sources said that rebar trade prices are up INR 100/mt ($1/mt) to INR 47,100/mt ($545/mt) ex-Mumbai and also up INR 100/mt ($1/mt) to INR 45,800/mt ($530/mt) ex-Chennai in the south.
Rebar trade prices are up INR 500/mt ($6/mt) to INR 42,100/mt ($487/mt) ex-Raipur and have gained INR 1,400/mt ($16/mt) to INR 42,700/mt ($512/mt) ex-Durgapur in the east.
The sources said that, though the mood was positive and the outlook improving, price gains have been varied across regional markets owing to differing levels of inquiries from retail trade like real estate developers.
Real estate developers in Tier II cities are more positive of a revival and hence more active in committing bookings, as they operate at lower costs levels compared to developers in metro cities with high-priced real estate.
“The mood is good based on expectations. Secondary mills are taking advantage of this by attempting to push higher quotations. Distributors are restocking in the hope that the government will continue to increase spending on infrastructure, creating incremental demand for construction grade steel products,” a Kolkata-based distributor said.
“There is a positive upside in the short term. But its sustainability will depend on macro-economic growth indicators responding to government policy initiatives,” he added.