The local Indian rebar market has deepened into a negative zone with prices losing ground, with induction furnace operators dropping prices reacting to the slowdown in stock movements and given overall nervous sentiments stemming from the unstable geopolitical situation in the sub-continent, resulting in cautious fresh bookings, SteelOrbis learned from trade and industry circles on Tuesday, May 6.
Sources said that rebar trade prices are down INR 700/mt ($8/mt) to INR 48,600/mt ($576/mt) ex-Mumbai and are stable at INR 48,500/mt ($575/mt) ex-Chennai in the south.
Rebar trade prices have lost INR 600/mt($7/mt) to INR 44,400/mt ($526/mt) ex-Raipur and are also down INR 600/mt ($7/mt) to INR 44,000/mt ($521/mt) ex-Durgapur in the east.
According to sources, secondary mills were forced to drop prices following weeks of slowdown in movement of stocks from mill to market and with the market definitely entering a new downtrend.
“Nervousness is beginning to spread in the market due to the regional geopolitical situation stemming from the escalating India-Pakistan militaristic tensions. The government announcement of a mock drill on air raid sirens and blackouts is casting gloom in the market,” a Kolkata-based distributor said.
“Any further escalation in India-Pakistan tensions and fears of conflict will throw out of the window all market-related forecasts and projections. Hence, all options are on the table for each market participant,” he added.
$1 = INR 84.37