The local Indian rebar market has continued to show divergent trends over the past week, with prices gaining in a major trading hub such as Mumbai but showing losses in other regions, with medium-scale secondary mills reporting a rise in inventories and a slowdown in retail sales, SteelOrbis learned from trade and industry circles on Tuesday, December 16.
Sources said that trade-level rebar prices are up INR 400/mt ($4/mt) to INR 44,700/mt ($493/mt) ex-Mumbai, but are down INR 200/mt ($2/mt) to INR 42,800/mt ($472/mt) ex-Chennai in the south.
Rebar trade prices have slipped INR 300/mt ($3/mt) to INR 39,000/mt ($430/mt) ex-Raipur and are down INR 38,450/mt ($424/mt) ex-Durgapur in the east.
The sources said that, while some restocking by construction companies with integrated mills provided support for prices in large trading hubs like Mumbai, secondary mills in regional markets have been reporting rises in inventories matched by a slowdown in retail sales to the real estate development segment, putting prices under pressure.
“While sporadic bookings from large buyers have been seen in western regions around Mumbai, retail sales remain slow and induction furnace operators are under pressure to liquidate stocks and are forced to lower prices,” a Kolkata-based distributor said.
“Retail sales are a concern because both users and market intermediaries are facing liquidity challenges and are slowing down fresh bookings. We expect price volatility to persist,” he added.
$1 = INR 90.67
