Local Indian rebar prices have remained stable over the past week, but the market has showed signs of running out of steam as trading volumes have dipped with large buyers completing restocking and retail sales in regional centers have remained weak, SteelOrbis learned from trade and industry circles on Tuesday, November 11.
Sources said that rebar trade prices are stable at INR 42,700/mt ($481/mt) ex-Mumbai and unchanged at INR 43,300/mt ($488/mt) ex-Chennai in the south.
Rebar trade-level prices, however, lost INR 600/mt ($7/mt) to INR 37,600/mt ($424/mt) ex-Raipur but are stable at INR 37,800/mt ($426/mt) ex-Durgapur in the east.
The source said that the recent surge in prices in the previous week has been quickly checked, as large buyers represented by engineering, procurement, construction (EPC) companies have retreated from the market having completed their restocking, resulting in a slump in overall trade volumes and curtailing the momentum of the upward trend.
At the same time, weak demand from small and medium-scale users from real estate development and urban infrastructure has continued to impact retail trade activity, resulting in a bearish mood among retail trade participants, the sources said.
“The uptrend proved to be short-lived as is natural when the market is entirely dependent on large buyers who generally complete restocking quickly because of cautiousness on carrying too large raw material inventories. Induction furnace operators largely dependent on retail sales bear the brunt of low trade volumes. This will offer a headwind to any further upside,” a Kolkata-based distributor said.
$1 = INR 88.64
