Local Indian rebar trade prices have continued on the path of consolidation with prices seeking higher levels amid the easing on supply-side pressure, with secondary mills having completed year-end stock liquidation and buyers across the retail and bulk segments resuming bookings, anticipating the market to have bottomed out in the current cycle, SteelOrbis learned from trade and industry circles on Tuesday, March 12.
Indian rebar trade prices are up INR 600/mt ($7/mt) to INR 49,500/mt ($598/mt) ex-Mumbai and are up INR 200/mt ($2/mt) to INR 47,700/mt ($576/mt) ex-Chennai in the south.
Rebar trade prices have gained INR 300/mt ($4/mt) to INR 43,800/mt ($529/mt) ex-Raipur and are up INR 500/mt ($6/mt) to INR 43,400/mt ($524/mt) ex-Durgapur in the east.
According to the sources, while it was true that buyers are more active than before anticipating prices to have bottomed out in the medium term, the recovery and consolidation has been driven more by the easing of pressures on the supply side, with mills almost halting discounted sales to liquidate stocks ahead of book closures for the current fiscal year.
“Despite the recovery, trade activity is still on the lower side. The optimism over the recovery is a cautious one because it is coming from the easing of supply-side pressure, while the demand forecast still remains on the bearish side. With the national elections to be announced over the next few weeks, political uncertainty and the slowdown in government spending will keep demand muted, as construction activities either take a pause or slow down,” a Kolkata-based distributor said.
“Our assessment is that rebar prices will therefore remain range-bound going forward until the next government formation after one or two months,” he said.
$1 = INR 82.80
