Local Indian rebar trade prices have continued to edge up, but the slight fall in trading volumes with buyers becoming cautious indicates that prices seem to be moving up too fast under the current demand situation, and the increased supplies from secondary mills are expected to trigger a correction, SteelOrbis learned from trade and industry circles on Tuesday, October 11.
Sources said that Indian rebar trade prices are up INR 500/mt ($6/mt) to INR 56,000/mt ($680/mt) ex-Mumbai and stable at INR 55,500/mt ($674/mt) ex-Chennai in the south.
Rebar prices are up INR 100/mt($1/mt) to INR 52,000/mt ($632/mt) ex-Raipur in the central region and have surged by INR 900/mt ($11/mt) to INR 51,800/mt ($629/mt) ex-Durgapur in the east.
“The outlook for the rebar market is extremely mixed. A section of it feels that the price rise is not commensurate with improvements in demand and that both trade and mills are pushing up price levels too fast. Some buyers in south and central markets are lowering activity, expecting a correction,” a Kolkata-based long product distributor said.
“But sponge iron and billet prices are performing strong and can limit any downside risks to rebar prices, according to furnace operators. The next few weeks will determine a more definitive trend as business activity gathers pace and construction workers return after the festival holidays,” he said.
However, according to an official at Shyam Steel Limited, eastern India’s largest rebar producer, regional variations in price movements are not a matter of concern as they reflect variations in the pace of construction activities.
“We are seeing a strong positive in the real estate sector as more housing projects are being launched. The government is also taking measures to hasten large project completions, which should see active buying from the engineering, procurement, construction (EPC) sector,” he said.
$1 = INR 82.30
